The UK is at a critical juncture, as reflected in the King's speech to Parliament last week, in which he called on the UK to "pursue sustainable growth by encouraging investment in industry, skills and new technologies".
A new Labor government has an opportunity to achieve this very achievable goal by developing new technology policies that support the country's economic growth while protecting consumers.
Today, there are several transformative technologies that can catalyze the economy in this way, one of which is blockchain technology. When we talk about blockchain, we don’t mean a “casino” that is dominated by speculation and may attract scams and criminals. Instead, we are referring to the blockchain technology that is driving the new computing movement.
In this sense, blockchain and cryptocurrencies are a way of building new networks that ensure people have a voice and choice in the networks they contribute to and use every day. This is in stark contrast to existing large tech platforms such as Facebook, Instagram, TikTok and X, which determine and influence our lives, make decisions unilaterally for all who use them, and can change their rules at any time.
At present, from a policy and regulatory perspective, blockchain technology is still in an "unsettled" state: no jurisdiction around the world has formulated clear policies to encourage well-intentioned entrepreneurs, deter bad actors, and protect consumers. and encourage innovation.
Cryptocurrency may be a polarizing topic, but the industry has been growing steadily. Today it is used by millions of people and the technology is already used by a large number of entrepreneurs from UK universities as well as traditional UK companies and institutions, including the NHS.
This spring we hosted a 12-week crypto startup accelerator program in London, which brought together 25 startups looking to build businesses based on or powered by blockchain technology. These projects span a variety of industries, including methods for decentralizing biological samples through markets, addressing copyright abuse in an artificial intelligence world, and automating private securitization transactions. Bringing these innovative entrepreneurs to London showcases the potential opportunities to build the tech startup community in the UK.
Last year, a16z chose to open its first non-US office in the UK. Why? Because we recognize this country’s extraordinary, undeniable strengths – not just its history in science and the industrial revolution, but also its potential and strength: world-class universities, a wealth of talent, capital markets and a growing Developing technology ecosystem.
Start-ups are eager to stay, grow and build legitimate blockchain applications and businesses in the UK. But regulatory ambiguity means entrepreneurs can’t build useful apps and will look elsewhere if necessary.
Britain cannot afford this.
Currently, the UK has not yet implemented a comprehensive regulatory framework for cryptocurrencies. Government policy priorities need to incentivize decentralization, the cornerstone of blockchain technology. Decentralization is a core benefit of blockchain and cryptocurrencies – enabling applications and services to redistribute data, power and revenue from the current conglomerates of large tech oligarchy to customers.
In what is quickly turning into a global competition over who will dominate future growth, the U.S. House of Representatives recently took a meaningful step forward by passing a bill with strong support from both Democrats and Republicans. This legislation provides guardrails for responsible blockchain innovation, setting clear rules for when blockchain projects and their associated crypto-assets will transition from centralized to decentralized.
By developing a permissioned and disclosure architecture suitable for decentralized crypto-assets, the UK will take the lead in providing guardrails for responsible blockchain innovation. Likewise, by appropriately restricting insider trading of cryptoassets until a project is fully decentralized, legislators can ensure consumers are protected from market abuse. These policies will help stimulate the entrepreneurship and growth of UK crypto companies while also ensuring the security of UK consumers.
This is the only way to subvert centralized services and platforms, because decentralized services built on the blockchain provide users with the ability to own and control their digital information (whether it is personal photos or health data) and participate in platform decisions. key mechanisms. Creators and small businesses can develop direct relationships with their audiences/fans and decide what to keep or charge – rather than charging exorbitant fees like centralized platforms currently do.
As the Labor government hosts a global investment summit within its first 100 days in power, we urge these leaders to discuss smart blockchain policies. “Embracing” new technologies does not mean reducing regulation and allowing bad actors to fill the gaps, potentially harming consumers. Nor is it more or stricter regulation that stifles innovation.
History tells us that balanced, careful regulation can foster innovation, protect consumers, attract long-term investment and set global standards. This technology and policy approach has been proven to deliver sustained and broad-based economic growth and job creation, even for the UK.
The UK has the potential to develop the next generation of tech leaders at home, strengthening the country’s economy for decades to come. Let’s empower the UK to revolutionize the future of technology and science again.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "MarsBit"
Original article by Anthony Albanese, a16zcrypto
