Event round-up: DLT, crypto and financial services – what different applications to expect in the UK market in 2022 and beyond
techUK’s tech and innovation programme joined forces with the financial services programme for the first live webinar of the new Blockchain Re-imagined series – techUK’s new campaign that will help set the foundations of what blockchain will mean to the UK tech sector and equip listeners with the knowledge and understanding of utilizing blockchain for innovation in the UK
In this webinar industry under, Chatham House rules, experts explored the exciting world of digital currencies, what the landscape looks like and what needs to happen to harness the power of distributed ledger technologies (DLT).
Speakers Included:
- Paul Worthington, Public Policy Manager, Novi
- Bryan D’Souza, Strategic Partnerships Lead, r3
- Jannah Patchay, Policy Lead, Digital Pound Foundation
- Rodger Oates, Consulting Partner, TCS
- Paul Mortby, European Policy Lead, Square
Speakers discussed in detail what has changed in the last 12 months to create momentum around DLT and digital currencies. Distributed ledger technology is not only being a key talking point in financial services, other application in supply chains management and green finance are also being developed and implemented.
Whilst there definitely is a renewed interest in DLT, we are witnessing an evolution not a revolution. For example, the Bank of England recently mentioned that if they were to implement Britcoin, the digital pound, this would not take place before the end of the decade.
One of the key factors for digital currencies to be at the top of the agenda is a more favourable policy environment across the globe. Governments and regulators are catching up with the technology, understanding the opportunities and started to start regulating and explore digital currencies, from crypto-assets to stable coins as well as digital wallets.
Overall, we are at the exploration phase. And this is the approach in the European Union and in the United Kingdom. We have seen a few papers published by the Bank of England, which also started a forum on central bank digital currencies (CBDC), and a new approach to crypto-assets by the Treasury.
The European Union published the Markets in Crypto-Assets framework (MiCA) which attempts to regulate crypto-assets, as ‘digital representations of value or rights which may be transferred and stored electronically’. The United Kingdom could be at a risk of falling behind if it does not learn from the MiCA framework, which is not the clearest piece of regulation, and develops its own framework for digital currencies.
Whilst the environment is more positive, it was noted that the UK is lacking a comprehensive regulatory framework, which creates many uncertainties for fintechs and firms wanting to launch new products.
Fintechs, but also Banks are looking at the implementation of the DLT. They are launching new projects to be implemented internally and are looking at efficiencies DLT could bring to their business models.
As we are seeing more and more projects are launched and implemented across the industry, it appears that technology is not the problem anymore. Whilst they are discussion around privacy, the custody of the assets, cost, or performance for example the main talking point is about regulating the technology to boost innovation, guarantee consumer protection and establishing a robust use case and business model.
The United Kingdom would benefit greatly from:
- a message from the top and a vision to be implemented on digital currencies rather than a bottom-up approach only
- learning the lesson from other jurisdictions
- develop world leading policy to boost innovation and guarantee consumer protection
If you want to find out more get in touch and read techUK’s digital currencies paper here
Do get in touch if you want to get involved in future activities on digital currencies.
Laura Foster
Laura is techUK’s Associate Director for Technology and Innovation.