Fintech Manifesto from Innovate Finance given thumbs up by Cameron even though he isn’t keen on use of encryption use

The new manifesto called Innovate Finance Manifesto:2020 has been released by the industry organisation Innovate Finance and seeks to push the UK forward as a key player in the innovation of financial technology (FinTech) both within and outside the UK.

According to the manifesto “Our vision for 2020 is for the U.K. to be the most investment-friendly environment for FinTech globally, attracting $4 billion of venture investment and $4 billion of institutional investment in corporate venture funds, accelerators and innovation programs,” states the manifesto. “Our vision for 2020 is for the U.K. to be the premier location for at least 25 global FinTech leaders, whether by IPO, global market share or by valuation.”

It also advised that a deep pool of both scientific and mathematical specialisation would be required in the UK and an emphasis on increasing in the number of graduates with technical skills as well as a commitment to a higher level of financial inclusion, effective regulation and a more proactive environment for the creation of policies relating to FinTech.

With the increased use of FinTech within the UK it is expected that there will be jobs available for next block of graduates that come out of university with technical qualifications and according to the manifesto an extra 100,000 jobs are expected to be created in the FinTech industry through a greater level of investment along with increased development of FinTech by leading companies around the world.

The new manifesto received a great deal of praise from the Prime Minister David Cameron who was in South Eash Asia with a trade delegation that partially consisted of FinTech specialists including the bitcoin company Blockchain.

Cameron advised “This government wants the U.K. to be the leading FinTech center in the world. That’s why, at the Summer Budget, we appointed a special envoy for this fast growing sector.”

He added “I’m pleased that Innovate Finance’s manifesto has set such ambitious goals, including the creation of 100,000 jobs. This will ensure we are a world leader in the development of financial services technologies.”

Although no mention was actually given to any specific digital currencies that use blockchain, including bitcoin, the move that have recently been made to invest in and develop digital FinTech in the UK by both the Bank of England and the government should definitely put the UK in a strong position to become a global hub for the use of digital currencies like bitcoin.

The only negative view of the manifesto from Cameron is encryption and the cryptographic technology that is the basis for the Bitcoin blockchain. He advised that strong encryption is something that his government intends to ban and this has been seen by many as a move that could seriously damage the UKs economy as well as the lead it currently has in terms of technology.

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According to sources from Barclays, one of the UKs largest banks, both it and UBS are likely to be the first banks to begin experimenting with the new technology called Ethereum, which will be using bitcoin 2.0.

This new technology provides a distributed computing platform running with an open-source code which means greater transparency and easier development of new systems to run with it and has been created by the non-profit organisation Ethereum. In the same way as bitcoin its value token, which is known as ether, can also be mined on its network.

Although Barclays has confirmed that it would be interested in trialling the new Ethereum technology it did go on to say that in the initial stages it would only be used by a small number of actual users, somewhere in the region of 100 to 200 to begin with. Barclays went on to add that this was the very beginning of the process and that those involved in the trial phase would only be people that were using the technology to build the systems using it.

Barclays advised that the reasoning behind the trialling of the Ethereum technology was due to it having pockets of innovation throughout its whole banking system and that it was doing as much as possible to promote efficiency at its investment bank as well as trying to promote social good through its accelerators and innovation labs.

Due to the obvious risks involved in the larger banks it would not really be viable to test technology like this on a large scale initially, especially with the current debugging issues that go along with Ethereum in its early form. It did, however, acknowledge that having it running alongside existing systems in a limited way would be the best way to begin testing any next gen ledger technology.

When it came to banks looking to get in on the blockchain action the Ethereum platform would be ‘the only game in town’ according the Ken Kappler, the communications officer for Ethereum during his briefing shortly before the Ethereum Frontier launch.

Work is apparently underway for the possible introduction of permissioned ledgers which should make the Ethereum platform a more viable option for a large number of banks. If technology like this were to be implemented it is more likely that it would run alongside the platform rather than as a direct part of it due to it not being part of the roadmap they had created. Like the rest of Ethereum though the technology would also be non-profit.

A source for Ethereum has said that the value of technology like this for banks depends a great deal on them working together and being more open to this kind of technology but unfortunately at the moment they seem more interested in remaining competitive than embracing new ideas.