The role of government: Policy for blockchain
There are big expectations to how blockchain will transform public sector. While few governments take action, many are leading the way, like in the Middle East.
We will discuss this further at Oslo Blockchain Day 30th of april. Meet our speakers and learn more.
For the past year, Kieran Brown has been leading blockchain research and policy work with the major Middle East government for their Smart Cities initiative. Kieran, senior consultant at Berkeley Research Group in London, thinks that one of the main obstacles of implementing blockchain in public sector is low levels of understanding.
“The awareness and competence of jurisdictions and the political leaders and senior civil servants that run them is concerning. Especially as citizen sentiment towards advanced technology (A.I, and blockchain among them) is hardening. This will have a negative effect downstream in eventual regulation.”
BRG have also been active as founding members of the EU’s blockchain standards and governance body, and blockchain observatory. Kieran`s call to action to government leaders, policy makers and regulators is to take an active information gathering and guidance setting role for the public sector.
“Governments who do not invest in upskilling themselves, and in providing a clear policy direction, and regulatory framework will likely end up victims of the future, not architects of it.”
“The time is now, not 3 years down the track, to invest in the foundational research, policy development and active role in “shaping” the market outcome that is best for citizens.”
Kieran says that there is some impressive thinking and work being done in the blockchain space. He looks forward to the work Estonian, Indian and Japanese governments are doing.
Should we regulate blockchain?
Kieran will share his insights at Oslo Blockchain Day, and chair a panel on the topic “Should we regulate blockchain”.
Tom Grogan, a corporate lawyer and Co-Lead of the Blockchain Group at Mishcon de Reya, will join the panel. He has worked alongside BRG to advise the Executive Office of a major Middle East Government on the development of their blockchain policy.
On the question what makes it hard to implement any new technology in public sector, Tom answers — ambivalence.
“Ambivalence. Governments don’t care about the pursuit of ‘technological advancement’, ‘automation’ and a ‘futuristic world’, and nor should they. They have bigger fish to fry: economic growth, job security, healthcare, defense, an aging society, homelessness, budget management and education. If emerging technologies are to succeed, they need to align themselves with one of these big ticket items.”
Property on blockchain
The value blockchain brings to the public sector will vary from place to place. Tom thinks that its most impact will be felt in emerging markets.
“In countries like UK, blockchain will like likely be first implemented to improve the speed and efficiency in processes which require multiple parties to trust each other and which currently rely on antiquated, often manual-input heavy systems.”
In the UK, Mishcon de Reya’s Blockchain Group has been advising HM Land Registry on the design and implementation of a blockchain-based residential property transfer platform.”
“This has recently culminated in the successful build and completion of the UK’s first digitised end-to-end residential property transaction, using blockchain-based smart contracts. The blockchain solution was developed through conversations with stakeholders across the property market. Barclays, SheildPay, and Yoti were all involved in the testing, for example. We sought to demonstrate how buying and selling a house can be made simpler and quicker.”
According to Tom, the way we talk about emerging technologies such as blockchain will have a direct impact on innovation and investment into them.
“Let’s stop using jargon-heavy, technical language and start talking plainly about the possible benefits of emerging technologies: the new business models they can enable, and the jobs which will flow from them. Let’s talk about the fact we can each have greater control of our personal data, or that fraud can be reduced and counterfeit goods eliminated. If we can change the conversation, investment and innovation will flow.”
Read more
The Blockchain Consensus — Mishcon’s dedicated blog
BRG white paper by Kieran Brown — Blockchain Technology Policy — Early stage lessons and guiding principles for government
Contact
Kieran Brown kbrown@thinkbrg.com
Tom Grogan Tom.Grogan@mishcon.com
