Original title: Embracing new tech policy can propel the UK forward
Original author: Anthony Albanese
Original source: a16zcrypto
Compiled by: Mars Finance, Eason
The UK is at a critical juncture, as reflected in the King’s speech to Parliament last week, in which he called on the country to “pursue sustainable growth by encouraging investment in industry, skills and new technologies”.
The New Labour government has an opportunity to achieve this very low hanging fruit by developing new technology policies that support national economic growth while protecting consumers.
Today, there are several transformative technologies that could catalyze the economy in this way, one of which is blockchain technology. When we say blockchain, we don’t mean the “casinos” that are dominated by speculation and can invite scams and bad actors. Instead, we mean blockchain technology that is driving a new computing movement.
In this sense, blockchain and cryptocurrencies are a way to build 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 Twitter, which determine and influence our lives, make decisions unilaterally for all users, and can change the rules at any time.
Currently, blockchain technology is in an “unsettled” state from a policy and regulatory perspective: no jurisdiction globally has yet developed clear policies to encourage well-intentioned entrepreneurs, deter bad actors, protect consumers, and encourage innovation.
Cryptocurrency may be a polarising topic, but the industry has been growing steadily. Today, it is used by millions of people and has seen a surge in entrepreneurs using the technology, from UK universities to traditional UK companies and institutions, including the NHS.
This spring, we held a 12-week crypto startup accelerator program in London, bringing together 25 startups seeking to build businesses based on or driven by blockchain technology. These projects spanned a variety of industries, including methods to decentralize biospecimens through marketplaces, addressing copyright abuse in an AI world, and automating private securitization transactions. Bringing these innovative entrepreneurs to London demonstrated the potential opportunities to build a tech startup community in the UK.
Last year, a16z chose to open its first office outside the United States in the United Kingdom. Why? Because we recognize the country’s extraordinary, undeniable strengths—not just its history of scientific and industrial revolutions, but also its potential and strength: world-class universities, rich talent pool, capital markets, and a growing technology ecosystem.
Startups are eager to stay, grow and build legitimate blockchain applications and businesses in the UK. But regulatory uncertainty means entrepreneurs are unable to build useful applications and will go elsewhere if necessary.
Britain cannot afford such consequences.
Currently, the UK has not implemented a comprehensive regulatory framework for cryptocurrencies. The government's policy focus needs to incentivize the cornerstone of blockchain technology - decentralization. Decentralization is the core advantage of blockchain and cryptocurrency - enabling applications and services to redistribute data, power and revenue from the current large technology oligopoly to customers.
In what is quickly evolving into a global race for who will dominate future growth, the U.S. House of Representatives recently took a meaningful step forward with the passage of a bill with strong support from both Democrats and Republicans. The legislation provides guardrails for responsible blockchain innovation, establishing clear rules for when blockchain projects and their associated crypto assets move from centralized to decentralized.
By developing a licensing and disclosure framework suitable for decentralized crypto assets, the UK will take the lead in providing guardrails for responsible blockchain innovation. Similarly, by appropriately restricting insiders from trading crypto assets until projects are sufficiently decentralized, policymakers can ensure consumers are protected from market abuse. These policies will help stimulate entrepreneurship and growth of UK crypto companies while also keeping UK consumers safe.
This is the only way to disrupt centralized services and platforms, as decentralized services built on blockchain provide users with key mechanisms to own and control their digital information (whether it’s personal photos or health data) and participate in platform decision-making. Creators and small businesses can build direct relationships with their audiences/fans and decide what to keep or charge for — rather than charging exorbitant fees like centralized platforms currently do.
As the Labour government hosts its Global Investment Summit within the first 100 days of its term, we urge these leaders to discuss smart blockchain policy. “Embracing” new technology does not mean less regulation, allowing bad actors to fill the gaps, potentially harming consumers. Nor is it more or stricter regulation, which would stifle innovation.
History shows us that balanced, careful regulation can foster innovation, protect consumers, attract long-term investment and set global standards. This approach to technology and policy has been shown to deliver sustained and broad-based economic growth and job creation, including for the UK.
The UK has the potential to develop the next generation of science and technology leaders at home, strengthening the country’s economic strength for decades to come. Let’s empower the UK to revolutionise the future of technology and science once again.