BAF 4th ANNUAL MEMBER SUMMIT SESSION 1: LORD MCNICOL OF WEST KILBRIDE HOUSE OF LORDS, UK PARLIAMENT

Summary

Lord McNicol of West Kilbride, a member of the UK House of Lords, discusses the potential of blockchain and digital assets to revolutionize finance and benefit the UK economy. He emphasizes the importance of a stable policy environment, collaboration with the government, and the need for a formal strategy for emerging technologies like AI. McNicol also highlights the opportunities in green finance, digital pounds (CBDCs), and securities tokenization, while stressing the balance between innovation and consumer protection.

Takeaways

• 🌐 The event was established in 2021 and has been growing steadily, focusing on discussions around blockchain and digital assets.
• 👥 The speaker thanked attendees and those in the metaverse, highlighting the global interest in the topics discussed.
• 🎤 Ian from West Kilbride, a parliamentarian from the House of Lords, was invited to share his thoughts on blockchain and emerging technologies as a force for good.
• 🇬🇧 The UK is seen as a potential leader in blockchain and fintech, with a need to build economies of scale and benefit from these technologies.
• 🏛️ Ian's background includes six years in the House of Lords, with roles in business and trade, and as a Deputy Speaker during COVID-19.
• 📈 Blockchain and fintech are crucial for the UK's financial sector, which contributes significantly to the economy and employment.
• 🌿 Fintech is leading in green finance, health technology, and financial inclusion, showing its potential for social change and environmental benefits.
• 💡 The speaker's involvement in companies like Astra Enterprise and Salid Money demonstrates a practical understanding of the sector's potential.
• 💼 The new labor government is tasked with creating a stable policy environment to support the financial sector's growth and innovation.
• 🔗 The potential of AI, open finance, and digital currencies like CBDCs was discussed, emphasizing the need for legislative oversight and a strategic approach.

Q & A

When was the organization mentioned in the script established?

The organization was established in 2021.

What has been the growth trajectory of the organization since its establishment?

The organization has been growing steadily since its establishment in 2021.

What topics have been discussed in the organization's meetings?

The meetings have involved interesting discussions around blockchain and digital assets.

Who is Lord McNicol and what is his role in the House of Lords?

Lord McNicol is a parliamentarian from the House of Lords, and he has been involved in various roles including being Shadow Minister in the Lords for business and trade, and one of the Deputy Speakers during the COVID-19 pandemic.

What was Lord McNicol's role as Shadow Minister in the Lords for business and trade?

As Shadow Minister in the Lords for business and trade, Lord McNicol dealt with international trade and business issues.

What is the significance of blockchain and fintech for the UK economy according to Lord McNicol?

Blockchain and fintech are incredibly important sectors for the UK economy, with the potential to revolutionize finance, promote social change, and improve everyday lives.

How does Lord McNicol view the role of fintech in green finance?

Lord McNicol sees fintech as leading the way in green finance, helping businesses access funding for reaching Net Zero targets and incentivizing greener behavioral changes in consumers.

What is the potential economic impact of blockchain on the UK economy as mentioned in the script?

According to a PWC report mentioned in the script, blockchain has the potential to boost the UK economy by £57 billion.

What is the role of the all-party parliamentary group in promoting blockchain and related technologies?

The all-party parliamentary group aims to bring together members from different political parties to discuss and promote the opportunities presented by blockchain and related technologies.

What are the key areas where blockchain technology is being studied and applied as per the script?

Blockchain technology is being studied and applied in areas such as public governance, CBDCs, tokenization, securities, social good, and supply chains, among others.

What is the current academic interest in blockchain technology as indicated by the script?

There is a significant academic interest in blockchain technology, with over 16,000 peer-reviewed research papers published on blockchain, crypto assets, and web three topics in the past 12 months alone.

Outlines

00:00

🌐 Introduction to the Blockchain Summit

The speaker opens by acknowledging the establishment of the organization in 2021 and its continuous growth. They express gratitude to attendees and those present in the metaverse, highlighting the importance of discussions around blockchain and digital assets. The speaker invites Lord Ian McNicol of West Kilbride, a parliamentarian from the House of Lords, to share his insights on blockchain and emerging technologies as forces for good, particularly in policy-making and the UK's economic benefits in the coming years.

05:00

💼 Lord McNicol's Background and Perspective on Blockchain

Lord McNicol discusses his experience in the House of Lords, his role as Shadow Minister for Business and Trade, and his tenure as a Deputy Speaker during the COVID-19 lockdown. He emphasizes the importance of understanding and embracing digital assets, blockchain, fintech, AI, and CBDCs to shape Britain's future. Lord McNicol stresses the need for the UK to become a leader in these technologies and calls for collaboration with the government to achieve this goal.

10:03

🌱 Blockchain and Fintech's Role in Economic Growth

The speaker delves into the significance of the financial sector to the UK economy, highlighting its contribution to economic output and job creation. They emphasize the potential of fintech, particularly in green finance, health technology, and financial inclusion. Examples such as Earth Chain's use of blockchain to track carbon footprints are provided to illustrate how technology can drive environmental and social change. The speaker also shares his personal involvement in fintech businesses, emphasizing ethical lending and the use of AI and open banking for credit decisions.

15:03

💡 The Future of Digital Currencies and Open Finance

The speaker discusses the potential of a digital pound (CBDC) and the need for legislative oversight. They highlight the importance of open finance and the integration of blockchain technology to expand financial services beyond current accounts. The speaker also touches on the potential of securities tokenization and the need for the UK to become a global hub for this innovation. They caution against the risks associated with speculative cryptocurrencies and emphasize the importance of consumer protection and proportionate regulation to foster innovation.

20:06

🤝 Collaboration and the Role of Policymakers

The speaker concludes by emphasizing the need for a collaborative approach between industry and policymakers. They mention the establishment of an All-Party Parliamentary Group to promote blockchain technology and encourage attendees to engage with their MPs to advocate for these technologies. The speaker also references a report by PWC that predicts blockchain could significantly boost the global GDP, with a substantial impact on the UK economy. They highlight the importance of viewing blockchain as an infrastructure technology with applications across various domains, including public governance, healthcare, and supply chains.

Keywords

💡Blockchain

Blockchain is a decentralized, distributed ledger technology that allows data to be stored across a network of computers in a secure, tamper-proof, and transparent manner. In the video, blockchain is highlighted as a transformative technology with the potential to revolutionize various sectors, including finance and supply chain management. The speaker emphasizes the UK's opportunity to become a leader in this field, particularly in the context of environmental sustainability and financial inclusion.

💡Digital Assets

Digital assets refer to any form of asset that is digital or electronic in nature, such as cryptocurrencies, digital art, and tokenized securities. The video discusses the importance of understanding and regulating digital assets to harness their potential for economic growth and innovation. The speaker mentions the need for policymakers to be knowledgeable about digital assets to shape effective policies that can benefit the UK economy.

💡Fintech

Fintech, short for financial technology, encompasses the use of technology to design, develop, and offer financial services and products. The video underscores fintech's role in driving innovation in financial services, particularly in areas like green finance, health technology, and financial inclusion. The speaker gives examples of how fintech companies are leading the way in creating lending markets for sustainable businesses and incentivizing greener consumer behaviors.

💡Policymaking

Policymaking refers to the process by which governments develop and implement policies to address societal issues and achieve economic and social goals. In the video, the speaker stresses the importance of policymakers understanding emerging technologies like blockchain and AI to create supportive environments for innovation and growth. The discussion highlights the need for a stable and consistent policy environment to foster the development of the financial services sector.

💡Emerging Technologies

Emerging technologies are innovations that are relatively new and have the potential to significantly impact industries and societies. The video focuses on technologies like blockchain, AI, and digital assets, which are seen as forces for good with the potential to reshape the future of Britain. The speaker calls for a collective effort to support these technologies and for the UK to become a leader in their development and application.

💡Regulation

Regulation in the context of the video refers to the rules and guidelines set by governments to govern the operation of businesses and industries, particularly in the realm of new and emerging technologies. The speaker discusses the need for proportionate regulation that protects consumers and businesses without stifling innovation. The video emphasizes the balance between fostering innovation and ensuring consumer protection in the rapidly evolving fintech and blockchain sectors.

💡AI

AI, or artificial intelligence, is the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video touches on AI's potential to innovate the way we work, live, and how public services function. The speaker mentions the necessity for the UK government to develop a formal strategy and regulatory frameworks for AI, highlighting its importance in sectors like health and finance.

💡CBDCs

CBDCs, or Central Bank Digital Currencies, refer to the digital form of a country's fiat currency, issued and regulated by the central bank. The video mentions the Bank of England's exploration of a potential digital pound and the need for legislative oversight. The speaker points out the importance of the UK not falling behind in the development of CBDCs, which could have significant implications for the country's financial infrastructure and international trade.

💡Tokenization

Tokenization in the video refers to the process of representing assets, such as securities, on a blockchain as digital tokens. This process can streamline transactions, increase liquidity, and reduce costs. The speaker highlights the potential for the UK to become a global hub for securities tokenization, which could be worth billions of dollars globally by the end of the decade. The video emphasizes the opportunities presented by tokenization in the context of the broader fintech and blockchain ecosystem.

💡Open Banking

Open banking is a system that allows third-party developers to build applications and services around the financial data held by banks. The video discusses the success of open banking in driving innovation and the potential for open finance, which could expand the system to include mortgages, pensions, and insurance. The speaker mentions the role of open banking in supporting ethical lending and the need to build upon its successes to deliver further benefits to consumers and the economy.

Highlights

Established in 2021, the organization has been growing steadily with discussions around blockchain and digital assets.

Gratitude expressed to attendees and those in the metaverse for their participation.

Introduction of Lord McNicol of West Kilbride, a parliamentarian from the House of Lords.

Discussion on blockchain as a force for good and its role in policy-making.

UK's need to build economies of scale and benefit from emerging technologies in the next few years.

Lord McNicol's experience as Shadow minister and Deputy speaker during COVID.

His role as General Secretary of the Labour Party and the challenges faced during that time.

The importance of understanding digital assets, blockchain, and fintech for the future of Britain.

The financial sector's significance to the UK economy and the role of fintech in driving growth.

Fintech's potential to revolutionize finance and promote social change.

Examples of fintech leading in green finance, health technology, and financial inclusion.

The potential of blockchain to transform supply chain reporting and environmental impact.

Lord McNicol's involvement in AML/KYC and ethical lending businesses utilizing new technologies.

The need for a stable policy environment to support the financial service sector.

The importance of collaboration between government and the fintech sector for innovation.

AI's role in innovating work, living, and public services, and the need for a formal strategy.

The potential of open finance and the interaction with blockchain.

The exploration of a digital pound (CBDC) by the Bank of England and the need for legislative oversight.

The opportunity for the UK to become a global hub for securities tokenization.

The necessity of balancing innovation with consumer protection in the crypto space.

The importance of proportionate regulation that supports industry growth without stifling innovation.

The formation of an all-party parliamentary group to build a blockchain-focused policy approach.

The global impact of blockchain with potential GDP boosts and the UK's opportunity to lead.

Transcripts

was established in

2021 um and um it's been growing

steadily U ever since and uh we had very

countries uh lots of uh interesting

discussions around blockchain and and

digital assets um so we are um very

thankful to to all of you who have come

here today um and there are other

peoples who are listening in in the

waiting area the lobbies and the

different instances here in the

metaverse so I would like to U invite um

uh Lord mechnical of West Kilbride uh

who is a parliamentarian from House of

Lords and um uh we will U love to hear

his thoughts on on blockchain emerging

Technologies as a Force for good and

especially around policym around these

Technologies and what the UK needs to be

doing in the next few years to build the

economies of scale and how the UK

economy can benefit from it so thank you

very much everyone and over to you Ian

thank

you brilliant thank you um very much for

that and for that um introduction and

it's it's great to be here again and

invited to your summit in the me of and

thanks for your help in getting me

prepared for for

it and I'm glad to have the CH to talk

um to you all about how we um as a

community can support these emerging

Technologies and how we can help to make

the UK our leader in blockchain in

fintech um and in these eming

Technologies as we move forward and how

we can work with government for that to

happen so before I start a let bit um

about

me I've been in the House of Lords now

for six years um I was Shadow minister

in the Lords for business and trade

dealing with international trade and

business issues and well as that for

three years I was one of the Deputy

speakers during covid when

Jacob m in the House of Commons brought

the House of Commons back physically

during lockdown they needed um the house

of to sit physically but all of the

current speakers were over the age of 70

they were all too old um and had

shielding letters so couldn't make it

into Parliament so they needed a

youngster um to which my kids um rolled

their eyes when I was asked but they

needed someone younger to come in so I

ended up cheering Parliament for three

years which was just

fascinating before coming to the House

of Lords I was General Secretary of the

labor party from 2011 to 200 18 the

general secretary is the same as the

chief executive officer the CEO I was in

charge of the money the Staffing the

campaigning fundraising and political

management not the policy that was The

Preserve of the leader and the shadow

cabinet to put it nicely like those

years running the labor party could have

been described as our political fa our

difficult political phase I'm in

opposition through Ed Miller and Jeremy

Corbin's leadership but the reality was

it was a very very tough time um for the

labor party the job itself is the most

incredible job but losing elections is

not in a position that I like to be in

um or many politicians like to be in now

fortunately K stammer I'm has

revolutionized the labor party and

brought us back to position I'm where

I'm we won the last election I'm from

such a bad position in

2019 Kier and Rachel Reeves the shadow

not the shadow anymore the cabinet and

the the team running government have an

opportunity um to to rebuild and to

reshape our country

and you on thise within this forum

within the summit have an opportunity to

help shape that and it is going to

require all of your help and and that's

largely because of not the

misunderstanding but just the lack of

knowledge around digital assets around

blockchain um around fintech around AI

around um cbdcs the the new technologies

that have the opportunity to shape the

future of Britain um are not

undersood in the way that they need to

or should be and that's why hopefully me

speaking to you will stimulate some of

you especially those of you in the UK to

reach out to your pols and to try and

help them and because there's

fear there's fear of the unknown there's

fear of things that you can't control

and there's fear um of some of those new

technologies and you see that in the

newspapers and the language around AI um

and large language models and where

that's developing so let me take a step

back a little bit and then we can work

through it the financial sector which is

partly where block blockchain sets and

obviously a lot of it is outside of it

as well but the financial sector is a

sector I know best um it's it's huge

it's big business for Britain cont it's

about 12% of our economic output over1

billion pounds to the treasury each year

and supports over 1 million jobs

throughout the

country Labor's job and Labor's priority

in government um their

mission as set out by K before the

election um is to achieve the highest

sustained growth in the G7 for that to

happen l this new government needs a

financial service sector that works and

grows

because when it grows the country grows

with it and and for that to happen we

need to deliver or the labor government

needs to deliver a stable consistent

policy environment that allows the

industry to do what it does best now

blockchain and Financial Tech fin techs

um are already incredibly important an

incredibly important sector and that's

only going to grow and from my

conversations I know that

labor is struck not only by the capacity

of fex to continue to revolutionize the

way we do Finance but also by its

capacity to promote great social change

and improve everyday lives of people

across the

UK and you can see this fintech is

leading the way in green Finance it's

leading the way in health technology

leading the way in financial

inclusion so with regards to Green um

Finance whether that's in creating a

lending market for S businesses to

access funding um they need to be able

um whether they're looking to reach

their Net Zero targets examples like um

funding options Green in the green

Finance

Market something which is vital when it

comes to when you consider smes

contribute onethird of the UK's carbon

emissions and often face some of the

biggest challenges when it comes to

adopting um a green future so new

technologies leading the way and others

and are if you look at aiming to

incentivize Greener behavioral changes

in

consumers um Earth chains use of

blockchain to show customers their

realtime carbon footprint and gain

emissions Insight from their spending

data these are the Technologies these

are the businesses um that government

should be looking to and helping um

support and blockchain technology is a

great example of how fintech can be

utilized for environmental for saving

the environment for environmental

purposes as transactions through the

supply chain can be recorded on the

blockchain or in blockchain consumers

can trace their ecological footprint um

and products all the way back to their

source and this is really important

because it has a potential to reform

transform scope three supply chain

reporting um to help um our

planet I've also been involved in a

number of vintex um and new technologies

myself so I come at this not just as a

politician but as a non-exec um and an

advisor one of those um companies is an

AML kyc business called Astra Enterprise

and the other's an ethical lending

business which I've been involved with

for the past 5 years

um called salid money and I think I

mentioned this last time I was here

salid money lens this business UK

business fintech business lens in the

unsecure unsecured near and subprime

markets using AI machine learning but on

the back of open banking to make all of

our lending decisions and this is done

in an ethical way an ethical way to help

those with no credit footprint possibly

ccj's count Court judgments against them

or thin credit files people are looking

to rebuild their credit scores because

without a clear credit

history I in the UK many people are

forced to unethical lenders loan sharks

or high cost

credit the

CMA in delivering open banking I think

nearly a decade ago

um helped both a new industry spring up

and in doing so I'm new Innovations to

drive new ways of helping people and

that's where all of you I come

in labor will seek to prevent the UK

from slipping behind and in fast moving

International no borders

industry that's not easy I'm to do

if you look back at the 2021 Khalifa

review it showed that the UK has the

capacity and the underlying qualities

needed to make us a world leader in

Finch it's the job of this new labor

government to make sure as a country we

take full advantage I'm of those skills

and the UK as we all know needs a

government not just willing eager to

partnership with the

sector I touched a little bit on AI um

before just say a little bit more about

it artificial intelligence remains

highly complex area and any government

specific this labor this new labor

government needs to develop a formal

strategy and sets of legislation and

Regulatory Frameworks that cover um

AI but what is

clear to me hopefully to all of us is

that AI must be and should be used to

innovate the way that we work the way

that we live the way that our public

sector Public Services functions and it

can spearhead the growth to

unlock that access to public data in the

right way and public spending let look

at what West streeting the health

secretary was saying only last week um

data and AI will need to not should will

need to play a

part in saving Our National Health

Service and it's for us to shape I'm the

frame uh of

that again touched a little bit on open

banking um what comes next open finance

how far does it go how does blockchain

um interact with open

finance we need to build upon successes

of open banking to deliver a road map

around and for open

finance expanding the system to include

possibly mortgages pensions Insurance

data and utilizing the technology to

support savings and Investments for

households not just current account

Banks I think one of the other things

that we'll see I've only got a few

minutes um is move on the digital pound

cbdc the bank of England are already

exploring and developing um how that

could work it will need legislative

oversight from Parliament that hasn't

happened yet we're still waiting to see

when and if that comes but if we are

going to deliver some form of British

digital

pound it will need to be approved

through Parliament again we see other

countries other jurisdictions rolling

this out quickly and not just within

their own countries across neighboring

countries and areas that they want to

trade and do trade with the UK cannot be

left behind on

this but then there's a question about

who delivers it and where's it sits and

so again an opportunity for yourself to

be involved and in

that Securities in tokenization was

actually mentioned within labor party

Manifesto the expanding use of

DT and the tokenization of

Securities in particular also presents

an exciting opportunity one that could

be

worth hundreds of billions of dollars

globally by the end of the

decade we want the UK I want the UK to

take advantage of this um and it should

be the ambition of a labor government to

be the Global Hub of Securities

tokenization and that's something that

crypto UK have welcomed and called

for our excitement however cannot and

must not be overshadowed by the risk

associated with speculative currencies

crypto C some stable coin collapses FTX

Scandal have hit and served the industry

badly labor needs to assess the ways in

which

it can prioritize consumer protection as

well as not undermining the

Innovative opportunities and that's it

there I'll just touch a little bit

on

regulation regulation is important

regulation protects the businesses the

industries more importantly protects the

consumers and the customers and the

clients especially when data um is

involved but the regulation needs to be

proportionate and the regulation cannot

undermine the ability of the

industry and those

startups and those people across the UK

looking develop and come up with new

ideas and new ways of working and

new uses for blockchain and fintech

cannot

stifle that inovation because if it

does it would just cause the industry to

collapse so with that I will finish just

want to say there's an all party

parliamentary group an

appg across the across the houses House

of Lords and Commons across the

political Spectrum labor conservative

and liberal Democrat

and we're looking to come together and

build a blockchain allp party

parliamentary group in this new

Parliament and it would be great if any

or all of you could basically contact

your members of parliament and just let

them know about the exciting

opportunities the exciting Technologies

um and they can help shape um shape that

so thank you very much what a pleasure

thank you very much uh Lord McNichol

this was an excellent speech and I agree

on all of the points you've you've

raised um really there is a big

Monumental shift in the global economy

if you look at this U the shift which is

driven by decentralization tokenization

and and all of the things you mentioned

and in fact there's a recent report

which um

um uh there's some data from PWC that

blockchain will boost Global GDP by $1.6

trillion by 2030 and for the UK alone

there is a potential for $57 billion um

to be generated uh in the UK economy

alone

and this is extremely important I think

the point also you mentioned about um uh

holistic multi-is disciplinary teamw

workking with the policy makers and

coming together uh it

is important point enjoy thank you very

much thank you um so um the U the point

U Lord M mentioned about the all party

parliamentary group you may be aware of

uh you may have seen or attended our

previous round tables in Parliament the

last one was was uh was a packed room

hugely successful we had over 100

industry representatives in May this is

just before the general election was

called and you may have met some of the

members um and um and and chairs and

vice chairs um NTI Alik who's no longer

MP but she did a fantastic job as a

chair of the group and last year she was

one of the first speakers um

parliamentarians in the history of

British politics to deliver a keynote

speech in the meterse um and really laid

out the plan for um the group and rais

some very important um points regarding

how UK can benefit from these uh

Technologies so we are really thankful

to all the policy makers and looking

to work with um new uh members of

Parliament uh we have a lot of new

members in after this election so we

would welcome them uh to join the group

as uh Lord mnel said you can get in

touch with your own uh MPS in local MPS

and and tell them about chain um and how

these Technologies can benefit the

economy uh because impact has been seen

and felt across

industry from all the things that Lord

BN mentioned the areas such as uh um

Public public governance cbdcs

tokenization uh Securities social good

Supply chains Healthcare um and and and

all the other major domains so very

important that we um we look at it as

kind of an infrastructure technology and

not just a very narrow um uh area of of

practice this is uh uh now

being studied in in in more than 800

universities around the globe blockchain

technology uh I'm an academic I'm in

touch with a lot of um uh professors

globally who are studying teaching on

blockchain and in just to give you an

idea in the just past 12 months alone

there are more than 16,000 research

papers have been published on blockchain

and crypto assets and web three topic

alone 16,000 uh peer reviewed papers so

it says um it is it is growing very very

fast and more and more applications of

blockchain are

coming uh which uh which industry is

working on