This week we focus on a recently published report claiming that the UK is poised to become a global leader in blockchain. To help us discuss this we are joined by Sean Kiernan– one of the reports key authors and CEO at DAG Global.

Sean is a banker, with previous experience in both Switzerland and London, as CEO of Falcon Private Bank’s London office, who at the time were the first regulated crypto-bank. He has recently been involved in setting up DAG Global, a London-based company aiming to become the UK’s first regulated crypto-bank where he is its CEO.

Blockchain in two minutes

The easiest way of describing blockchain is to imagine a spreadsheet, which everyone across the world can see, in both its current format but also every previous edition. This analogy reflects the decentralization of the ledger and also the immutability of the blockchain technology and can be extended further as formulas can be added to spreadsheets. The addition of formulas reflects automation offered by smart contracts, allowing ecosystems to be built and enabling the restructuring of processes for the benefit of all parties.

 

Is the UK placed to become a leader in blockchain?

To build a successful blockchain ecosystem, both IT and Financial sectors are required. Unlike the US, where San Francisco and New York are independently recognised as the technology and finance hubs respectively, London is rare in that it has a huge IT sector alongside a financial services sector which are both globally recognised. Many of the big American IT houses have acknowledged this, with Google, Apple and Facebook increasing their UK staffing despite Brexit lying just around the corner.  In addition to the right industry components, the UK’s regulatory framework is also beneficial to widespread blockchain development and adoption, but more on this will be mentioned later.

Whilst places like the Zug Valley in Switzerland are also competing for the title of ‘blockchain capital’, with an intent in the Swiss Banking sector redefining itself through marketing and cryptocurrency. However, the Swiss finance sector cannot compete with the depth of financial services offered in London, with a multitude of hedge funds, insurance, private equity and asset management firms alongside a healthy range of private banking firms also, leading to wider demands on the blockchain ecosystem and more potential for progress. The presence of blockchain consortium R3 in London represent the developmental opportunities in London, not only in finance but also within both healthcare and real-state industries also.

 

How has the UK Government engaged with blockchain?

The involvement of the All Party Parliamentary Group on Blockchain (APPG Blockchain) and Deep Knowledge Analytics in authoring this report has outlined the discussions between governmental groups and different sectors of the UK economy as to how blockchain can be used to optimal effect. Additionally, the FCA has provided public statements of support for the eme...