Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Regtech, Compliance, Governance
Ontario’s FSRA Appoints Dexter John as New CEO
Regulation | Jan 28, 2025
Image: Freepik/pch.vector
Ontario's Financial Services Regulator Appoints Experienced Leader
On Jan 27 2025, the Financial Services Regulatory Authority of Ontario (FSRA) announced the appointment of Dexter John as its new Chief Executive Officer. John brings a wealth of experience in corporate governance, risk management, and financial services and will lead the FSRA into its next phase of operations, focusing on enhancing regulatory effectiveness and consumer protection, starting March 1, 2025. John previously held senior leadership positions in the financial services sector and highlights his commitment to fostering trust and innovation in Ontario's financial services and pensions industry.
See: Overcoming Barriers to Growth in Financial Regulation
Dexter John, incoming CEO FSRA:
“I am honoured to have the opportunity to lead FSRA and to build on the excellent work of the team in advancing the organization’s vision. FSRA plays a critical role in strengthening Ontario’s financial services sector, and I look forward to working with our staff, stakeholders, and partners to ensure we continue to deliver on our mandate and create positive outcomes for Ontarians.”
John is also no stranger to innovation. During his tenure on the FSRA Board of Directors, he chaired the Business Technology Transformation Committee and in previous role as President/CEO of Morrow Sodali (Canada) Ltd., John advised companies on corporate governance and environmental, social, and governance initiatives, areas that often involve innovative strategies to meet changing market and regulatory expectations.
See: Why Ontario Limited Partnerships Are Ideal for Private Funds
Joanne De Laurentiis, Chair of the FSRA Board of Directors:
“Mr. John’s leadership and strategic insight will be invaluable as FSRA continues to modernize Ontario’s financial services regulatory framework, engaging collaboratively with FSRA’s stakeholders and deliver regulatory efficiency and effectiveness. The Board is confident in his ability to build on FSRA’s progress and drive forward its ambitious agenda.”
Why This Matters
Dexter John's leadership ensures FSRA balances regulatory efficiency, consumer protection, and innovation, fostering trust and progress in Ontario's financial services.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Canada’s AI Competition Report Faces Big Tech Challenges
AI | Jan 27, 2025
Image courtesy of Freepik AI
Canada’s AI and Competition Report Shows Big Tech, Big Challenges, and Big Questions
On January 27, 2025 the Competition Bureau of Canada published the results of its consultation on artificial intelligence (AI) and competition on March 20 based on inputs from 28 stakeholders from global tech firms to startups, academics and consumer advocacy groups, outlining key issues and opportunities of AI in Canada. The findings highlight a pressing need for Canada to balance innovation with fair competition.
Key Feedback from the Consultation
Stakeholders agree that AI is a game-changer in business, forging innovation in sectors like finance, healthcare, and transportation, and opening up endless possibilities but it also brings real challenges that Canada needs to address head on. AI relies on access to high quality data, compute power and specialized expertise making it challenging for smaller businesses to enter the space or compete.
Big Tech Dominance
Perhaps the biggest concern is the dominance of AI by a handful of large big tech companies like Google, Amazon and Microsoft who control most of the AI infrastructure like data centers, supercomputers and AI chips. This concentration of power isn't new to Canada who is fine with a handful of large banks controlling the majority of the country's financial assets. While Canada has many AI players such as Cohere (Canadian government invested $240 million), Element AI (sold to ServiceNow in U.S.), Waabi, Peak Power, Tenstorrent, Deep Genomics (see CVCA post on growth of Canadian AI by investment mapped), and is recognized for its strong AI research leaders, they do not necessarily operate at the same scale as the likes of big U.S. or Chinese tech companies like OpenAI or Google. As with all forms of high concentration of power, it creates significant barriers for innovative startups and smaller firms to access the resources to train and deploy competitive AI models, however this could change with DeepSeek's disruption. Will Canadian AI firms be able to compete effectively globally, if they are dwarfed in size by their competitor's resources.
See: CMA Flags Big Tech’s Tightening Hold on AI Markets
Large players could also control the AI supply chain by not allowing smaller competitors to access the infrastructure and tech needed to develop AI systems. Exclusive partnership agreements could also adversely impact competition. Could large players shut off access to critical AI inputs in a type of tariff trade war?
Last December 2024, the Canadian government announced the Canadian Sovereign AI Compute Strategy, a $2 billion investment over 5 years aimed at reducing the reliance on foreign tech giants and strengthen Canada's AI infrastructure but will it be enough when the U.S. has launched a $500 billion Stargate AI infrastructure project?
Other AI Risks Flagged
AI tools such as algorithmic pricing can unintentionally lead to anti competitive practices, when for example, a system automatically adjusts prices to align with competitors - price collusion that's hard to detect and regulate.
The report talks about accountability when AI systems become more autonomous and complex, who is responsible for the outcome of their decisions. While not a new point, the risk is a legal and ethical challenge where AI generates biased or harmful decisions. Think for example a loan approval of auto hiring process.
See: How AI Is Evolving Finance, Security, and Global Economies
Another major concern of course is the distribution of misinformation and rise of fake AI generated content like deepfakes, fake reviews etc that mislead consumers, damage trust, and give unscrupulous businesses an unfair/unethical business advantage.
Overview of Recommendations
The recommendations in the report are quite high level and scattered throughout the report but here they are in a simple format.
- Legislation should be tech neutral
- Conduct comprehensive market studies to better understand how AI will impact competition (i.e. AI's impact on payments, global regulatory standards)
- Promote fair competition and reduce barriers (ensure equitable access to data for startups and SMEs, invest in compute resources to reduce reliance on foreign tech, foster partnerships between large and small players to prevent incumbents from dominating, support SMEs with incentives like grants and tax credits)
- Ensure transparency and consumer protection (may need to strengthen existing laws)
See: OpenAI’s U.S. Economic Blueprint and Takeaways for Canada
- Develop ethical and inclusive AI practices (encourage open source tools, prioritize societal values, privacy, fairness, prevent bias and discrimination)
- Collaborate globally with regulators like the UK's CMA, U.S.'s FTC and EU to harmonize AI policies and standards
- Define AI consistently across policies
- Continue stakeholder engagement
The consultation makes one thing clear. AI offers enormous potential for Canada but its benefits won’t be evenly shared unless Canada takes deliberate and strategic action.
A Few Questions About Competition and the Future of Canada's AI Strategy
- What changes are needed to Canada’s Competition Act to address issues like AI price fixing and monopolies?
- How can the government create fair rules for data sharing without holding back private sector innovation?
- Can Canada lead globally by focusing on ethical or responsible AI to stay competitive?
- How can open source AI tools be improved and supported to make it easier for small businesses to compete?
- What steps can Canada take to protect its AI infrastructure from global political risks and supply chain problems?
See:
Davos 2025 Themes and Takeaways for Fintech
Implications of Meta’s Fact-Checking Exit
Elon Musk’s X Challenges California’s Deepfake Law
- What new funding options beyond grants and tax credits could help startups afford access to computing power and data?
- What safeguards are needed to stop AI deepfake scams and harmful decisions made by biased algorithms?
- How can Canada hold companies accountable when their AI systems discriminate in areas like hiring or lending?
- How can Canada stop its top AI talent from leaving the country to work for global tech giants?
- What tools will Canada use to measure the success of its AI strategy in driving innovation, fairness, and trust?
Outlook
The Competition Bureau’s AI and competition consultation report stressed the importance for Canada to address big tech dominance, support Canadian innovation, and ensure fairness in the AI market. The Canadian Sovereign AI Compute Strategy is promising but must come with robust policies, global collaboration, and targeted investments to level the playing field.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Davos 2025 Themes and Takeaways for Fintech
WEF | Jan 24, 2025
Image: Davos 2025 Annual Meeting (WEF website)
Davos 2025: Key Themes and Implications for Fintech
The World Economic Forum is currently hosting Davos 2025, its annual meeting in Switzerland, from January 20 to 24. This year's theme is “Collaboration for the Intelligent Age” bringing together global leaders, innovators, and policymakers to address pressing global issues around geopolitics, economic transformation, AI advancements, and the future of sustainable finance. While over 50 heads of state and government are participating, a number of prominent leaders are not participating like Indian Prime Minister Narendra Modi and Chinese President Xi Jinping, likely due to differing global priorities.. Below is an overview of select speeches relevant to fintech and their implications for the sector.
1. Economic Growth and Deregulation
Donald Trump’s Return to Power
The U.S. President Donald Trump spoke virtually and delivered an aggressive agenda to stimulate economic growth, highlighting priorities including deregulation, energy independence, and domestic manufacturing. He declared that, “Under the Trump administration, there will be no better place on Earth to create jobs, build factories, or grow a company than right here in the good old USA”. He also announced $500 billion in private sector funding for AI infrastructure known as Stargate Project, and stressed that the U.S. was open for business and a hub for innovation. Trump also plans to slash corporate taxes to 15%.
Additional points from Trump's speech:
- Trump proposed tariffs on goods manufactured outside the U.S., saying: “If you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff.”
- He criticized oil producing countries like Saudi Arabia for keeping oil prices so high, arguing that reducing prices could hurt Russia's revenue thus putting an end to the Ukraine conflict.
- Trump said interest rates are linked to economic growth and consumer spending. He criticized prior interest rate hikes for increasing borrowing costs and called for immediate reductions in interest rates.
- Accused major banks like Bank of America for discriminating against conservatives. He also criticized the EU for its antitrust fines on American tech companies and advocated for fairer trade practices.
- Encouraged NATO member countries to increase their defense spending to 5% of GDP, highlighting the disproportionate financial burden the U.S. is carrying for being a member of NATO.
The implications of Trump’s policies should make it easier for businesses to operate -- supporting innovation and growth, cutting regulations, lowering interest rates, and investing in AI technology.
See: Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
All of these changes provide fintech companies with opportunities to grow in areas like credit services or AI driven financial tools. Tariffs and trade rules may also encourage fintech firms to build and operate within the U.S. markets (although the tariffs being talked about are largely applied to physical goods).
2. Technological Advancements and Artificial Intelligence
Ursula von der Leyen on Innovation and Values
In the European Commission President's speech by Ursula von der Leyen, she urged Europe to lead tech innovation while maintaining its regulatory frameworks. She also mentioned the importance of public-private collaborations and streamlining regulations to close the innovation gap. Asking for global cooperation to ensure ethical AI implementation and sustainable growth.
"we are likely to continue to see a frequent use of economic tools, such as sanctions, export controls and tariffs. [Its] important that we balance the imperative of safeguarding our security with our opportunity to innovate and improve our prosperity."
See: How AI Is Evolving Finance, Security, and Global Economies
Europe’s commitment to balancing innovation with strong regulations, signals an opportunity for fintechs focusing on compliance and sustainability. Companies that align with ESG standards could gain a competitive edge in Europe.
Tony Blair on AI in Governance
Former UK Prime Minister Tony Blair discussed the game-changing potential of AI in public services. He referenced Togo’s rapid development of a digital payments platform (learn more)during COVID-19 as an example of innovation driven by strong leadership. “Properly harnessed, AI can transform healthcare, education, and governance,” he said emphasizing the importance of top-down support for such initiatives. There's potential for fintechs to lead in areas like public sector payment systems, digital identity verification, and financial inclusion. Collaboration with governments could accelerate fintech adoption globally, and produce a massive win-win.
3. Global Cooperation and Sustainability
Volodymyr Zelenskyy on Europe’s Strategic Role
Ukraine’s President Volodymyr Zelenskyy highlighted Europe’s strategic importance in global security and economic cooperation, urging Europe to align its priorities with its allies and avoid taking a backseat to geopolitical risks. There's a role for fintech to facilitate cross-border collaboration, facilitating secure transactions and financial innovation to support economic stability.
See: 2024 Global Fintech Funding Insights for Investors & Founders
Ding Xuexiang’s Call for Multilateralism
China’s Vice-Premier Ding Xuexiang talked about the importance of multilateral cooperation to address global economic fragmentation, calling for open global markets and greater collaboration. With many calling for improved collaboration, it signals opportunities for the development of integrated payment systems for more streamlined global transactions.
“Trade wars have no winners.”
Cyril Ramaphosa’s Vision for South Africa
South African President Cyril Ramaphosa discussed Africa’s potential to lead in fintech innovation. He highlighted Africa's milestones and growth in digital transformation while calling for greater economic integration to unlock new opportunities. Africa's growing fintech ecosystem and underbanked population is a great opportunity for partnerships between global fintech firms and African governments to provide scalable and inclusive solutions that can support financial access and education for underserved populations.
“Technology is key to driving financial inclusion and economic growth across Africa."
Javier Milei on Economic Freedom
Argentinian President Javier Milei advocated for transparency and economic freedom while criticizing interventionist policies. He urged countries to embrace libertarian principles. His speech signals a more open and competitive market for fintechs in Argentina, supporting regional fintech growth and innovation.
“The winds of change are blowing in the West.”
Outlook
While the final day at Davos 2025 still remains to be seen, the convergence of technology, governance, and sustainability are key to the future of global finance, partnerships and collaboration.
See: OpenAI’s U.S. Economic Blueprint and Takeaways for Canada
Without a doubt the fintech sector will play a critical role in driving resilience, growth, inclusivity and innovation in the age of intelligence.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
SEC Rescinds SAB 121, Allowing Banks to Custody Bitcoin
Crypto Regulation | Jan 24, 2025
Bye Bye SAB 21 -- Hello SAB 122, Banks Can Now Securely Custody Cryptocurrency Assets
On January 23, 2025, the U.S. Securities and Exchange Commission (SEC) cancelled the controversial Staff Accounting Bulletin No. 121 (SAB 121) and replaced it with an updated SAB 122. This move addresses the concerns about the accounting treatment of digital assets, opening the door and making it easier for banks, fintech companies, and crypto custodians to legally provide cryptocurrency custody services.
Key Insights
- The problem with SAB 21 is that it required all financial institutions such as banks, fintech firms, and crypto custodians to record customer crypto assets as liabilities on their balance sheets, inflating the financial and operating risks (of doing business with crypto). This accounting treatment discouraged banks from offering custody services for crypto because it inflated their liabilities making their financial positions look risky, impacting regulatory compliance.
- Now with the new SAB 122, financial institutions can now report their services more accurately without inflating liabilities by following well known accounting Financial Accounting Standards Board (FASB) rules in the U.S. or similar international standard.
See: Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
- The updated bulletin reminds entities to maintain clear and detailed disclosures that allow investors to understand obligations related to the company's responsibilities to safeguard crypto assets, such as detailing operations, potential risks, and management practices.
- The rescission is to be applied retrospectively, starting from December 15, 2024 with options for early adoption.
SEC Commissioner Hester Peirce Reaction on X:
"Bye, bye SAB 121! It’s not been fun" -
Why it Matters
The rescission of SAB 121 further highlights the regulatory pivot currently evolving on digital assets and their imminent role in mainstream finance and broader financial landscape. It could attract billions of dollars in institutional investments into crypto markets, further bridging the gap between traditional versus digital finance while boosting innovation and the credibility of cryptocurrencies.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This development could set a precedent for other jurisdictions to follow. As regulatory clarity improves, crypto market potential as a core piece of the global financial ecosystem grows stronger.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
Regulation | Jan 22, 2025
Image: Freepik
Peirce and Uyeda to Develop Regulatory Framework for Digital Assets in the United States
Mark Uyeda, the acting Chairman at the U.S. Securities and Exchange Commission (SEC) published a press release today announcing the establishment of a Crypto 2.0 Task Force to develop a comprehensive regulatory framework for digital assets to be led by Commissioner Hester Peirce otherwise known as 'Crypto Mom' for her well documented pro-innovation views. Other members of the task force include Richard Gabbert and Taylor Asher, to serve as Chief of Staff and Policy Advisor for the 2.0 task force, respectively.
Why Setup the Crypto 2.0 Task Force
The Crypto 2.0 Task Force is in response to the 'head scratching' issues with the SEC's regulatory approach to digital assets which has largely relied on regulating via enforcement. The lack of regulatory clarity has stifled innovation, causing innovators huge delays, legal risks and in many cases project abandonment. The unclear regulatory landscape also created an environment conducive to fraud, undermining investor confidence and market integrity.
See: SEC Files Appeal Brief as XRP Hits Record High
In the release, the SEC acknowledged that 'The SEC can do better" at crafting a framework that balances innovation while protecting investors. Yes, it is possible, and so with the establishment of the Crypto 2.0 Task Force, the SEC gets another kick at the can to add clarity on who must register and 'practical solutions' for companies looking to register. Further, the Task Force will work with Congress and coordinate with the various federal agencies including the Commodity Futures Trading Commission, and states along with global counterparts to implement a structured and transparent regulatory framework.
Task Force Perspectives
Commissioner Hester Peirce
Commissioner Peirce (often referred to as "Crypto Mom") has consistently advocated for clear and practical crypto regulations, and emphasized that enforcement actions alone are insufficient for providing regulatory clarity. Previously, Peirce also highlighted the importance of inclusive decision making within the SEC and criticized the act of issuing significant regulatory measures without comprehensive industry consultation, saying "Rules of such broad effect should be set by the full Commission, not by staff answering only to the Chairman."
See: Fidelity Report Insights on Digital Assets in 2025
Commissioner Peirce in a 2021 interview said:
"We want to provide people clear guidelines ahead of time and then they can figure out how they can do something so that it is legal."
Acting Chairman Mark T. Uyeda's
Previously, the Acting Chairman Mark T. Uyeda has shown commitment to fostering innovation and expanding access to private markets. Uyeda, in collaboration with Peirce, opposed restrictive wealth thresholds for the definition of accredited investors, and instead advocated for criteria that focused on knowledge and risk awareness over financial benchmarks.
Richard Gabbert, Chief of Staff
Richard Gabbert serves as the Crypto 2.0 Task Force's Chief of Staff. Previously, he was Counsel to Commissioner Hester Peirce, advising on various regulatory matters including over-the-counter derivatives market reforms mandated by the Dodd-Frank Act. Before joining the Commissioner's office, Gabbert was a Senior Special Counsel in the SEC's Office of Derivatives Policy within the Division of Trading and Markets, where he led rule making teams addressing the cross-border regulation of derivatives markets. While his direct statements on cryptocurrencies are not widely publicized, his background suggests a focus on clear regulatory guidelines and market integrity.
Taylor Asher, Chief Policy Advisor
Taylor Asher is the Chief Policy Advisor for the task force. Prior to this role, Asher served as a Confidential Assistant and Policy Advisor to Commissioner Mark T. Uyeda. Although public statements from Asher about crypto are limited, his role highlights involvement in shaping policy decisions related to digital assets.
Outlook and Next Steps
The Task Force anticipates hosting various expert roundtables in the future but wants everyone to know that they welcome public input, and in the meantime send feedback to: Crypto@sec.gov.
See: Crypto Mom & Uyeda Defend Flyfish Club NFTs as Utilities
With Commissioner Perice's leadership and contributions from seasoned experts, Richard Gabbert and Taylor Asher, the Crypto 2.0 Task Force has the potential to create a more inclusive, transparent, and dynamic crypto ecosystem in the U.S.. One that balances innovation and investor protection by prioritizing clear guidelines and stakeholder collaboration.
Commissioner Peirce:
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation."
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Trump’s Inauguration Marks New Chapter for Tech Giants
Trump | Jan 21, 2025
Image: Freepik AI/ibrandify
Amidst Global Scrutiny, Trump's Inauguration Signals New Era of Collaboration with Tech Giants
Yesterday, President-elect Donald Trump was inaugurated as the 47th President of the United States, marking a turning point for the tech industry. Leaders from some of the world’s most influential technology companies have been meeting, contributing funds, and jockeying for support from Donald Trump and his Republican administration during the run-up to the event, which showcased a laundry list of big tech CEOs in attendance such as X's Elon Musk, Amazon's Jeff Bezos, Google's Sundar Pichai, Apple's Tim Cook, Microsoft's Satya Nadella and TikTok's Shou Zi Chew to name a few. This alignment is due to Donald Trump's shift towards innovation friendly policies, an easing of regulatory constraints, and partnerships that align government priorities with tech growth and business opportunities.
From Critic to Ally
Trump's first term's administration was combative against several tech giants, pushing antitrust lawsuits and bans on platforms like TikTok due to national security concerns. However, leading up to his inauguration he promised to 'save' TikTok by delaying its national ban, which was celebrated by its 170 million American users. Shou Zi Chew, CEO of TikTok praised Trump's efforts: “We are grateful for the president’s commitment to finding a solution that keeps TikTok available for our users in the United States.”
See: Kevin O’Leary’s TikTok Bid – Privacy and Innovation
Another glaring example that the administration is keen on fostering tech partnerships to boost innovation is the appointment of Elon Musk to run DOGE (The Department of Government Efficiency). DOGE is not only a hat-tip to the cryptocurrency by the same ticker symbol, but faced with massive national debt, Trump's approach to cost reduction and streamlining outdated bureaucratic processes with (not just) new technologies but also tech thinking and execution.
Different Story Globally
As the U.S. administration pivots to collaborative relationships with big tech, policymakers and regulators globally are ramping up scrutiny across a range of issues from data privacy, antitrust concerns, content moderation, and ethical implications of artificial intelligence.
The European Union's Digital Markets Act (DMA) and Digital Services Act (DSA) are designed against monopolistic practices and require more openness about how algorithms make decisions. Several high profile antitrust cases. For example, the EU charged Apple with breaching the DMA forcing it to pay €13 billion in taxes to Ireland. The EU also fined Google for abusing its dominance in comparative shopping practices, fining them €2.4 billion.
See: Canada Sues Google Over Anti-Competitive Ad Practices
In India, the government is rolling out strict data localization laws and content moderation policies to curb everything from national security to a growing comfortableness about foreign tech firms influencing of domestic politics and culture.
China has taken an even tougher stance by cracking down on its own tech giants, including Alibaba and Tencent. The Chinese government is also introducing stricter data governance rules and control over the digital economy, seeking to align tech innovation with national priorities.
In Canada, the government introduced of the Online News Act (Bill C-18) requiring tech giants like Google and Meta to compensate Canadian news outlets for using their content, creating a lot of friction. While Google complied and committed to annual payments to a collective fund managed by the media sector, Meta decided to block news content on Facebook and Instagram in Canada instead, leading to a significant 90% drop on Canadian news publisher's facebook pages since implementing the ban.
Outlook
Striking the right balance will be key over the next four years. On one hand, governments must address public concerns about data privacy, misinformation and monopolistic practices. On the other hand, there's a strong need to collaborate with tech to advance economic growth and innovation.
See: Canada and Trump Risk Index What Fintechs Need to Know
Big tech is sandwiched between these priorities and will need to adapt to local requirements in each country they operate in without compromising their global visions. For financial technology companies and investors, the next four years will be full of opportunities and complexities, as aligning with government priorities becomes an essential ingredient for success.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
OpenAI’s U.S. Economic Blueprint and Takeaways for Canada
AI | Jan 15, 2025
Image: AI in America Report cover (OpenAI's Economic Blueprint)
In the Face of Tariffs, OpenAI's Blueprint for America Highlights Opportunities for Canada to Rethink its AI Strategy
At the start of the week, OpenAI published a 15 page PDF overview of 'AI in America: Economic Blueprint' outlining its take on how the United States can lead artificial intelligence globally with a focus on chips, data, energy, and talent 'oh my' (remember that verse from the Wizard of Oz?). Those foundations of AI leadership are aligned with said overarching goals being competitiveness and security, regulation (rues), and infrastructure. As the U.S. presses forward, Canada should feel the urgency to compete and should rethink it's actionable AI strategies, especially as the threat of 25% tariffs cloud economic trade relations. This article reviews the blueprint and looks at actionable strategies for Canada to consider.
U.S. Blueprint for AI Leadership
The report talks about foundational pillars that will help focus resources to drive AI innovation while sustaining global competitiveness.
1. Chips - Building blocks of AI
There's a reason why NVIDIA and other chip companies are in hot demand. At the heart of every AI system is the required hardware like chips and semiconductors to allow AI models to process enormous amounts of data and lightening speed. The U.S. recognizes this and in addition to the latest restrictions on chip exports has passed the CHIPS Act investing USD $52 billion rebuild the domestic U.S semiconductor industry to reduce reliance on foreign suppliers and improve supply chain resistance. The CHIPS Act also includes federal incentives to encourage companies to set up top notch chip production plants. The blueprint also advocates for creating economic zones focused on semiconductor R&D to boost innovation and jobs. These initiatives are to avoid hardware bottlenecks that could slow innovation while boosting competitiveness in the global chip market.
2. Data - Fuel for AI systems
AI models are only as good as the data they are trained on, which is a concern given Elon Musks' recent announcement about human data for AI being depleted. Further, human data needs to be high quality and diverse to enable breakthroughs in sectors like healthcare, transportation or finance. Data is not just the 'new oil' but it's a strategic asset that individuals, companies, and governments around the world want to control to drive innovation and economic growth.
See: Canada Aims to Regulate AI in Search & Social Media
The U.S. government is mobilizing large amounts of public data for use in AI development with open data initiatives like data.gov and supporting the creation of data standards and protocols to ensure interoperability and security. Government, academic and industry partnerships are being encouraged, and tech giants are creating ecosystems where private data can be used responsibly like Google AI and Amazon's commitments.
3. Energy - Powering AI Sustainably
Like Bitcoin (crypto), AI processing to train large language models or handle transactional queries consumes a staggering amounts of energy, sparking discussions around the need for sustainable AI. To address this challenge, the U.S. is integrating clean energy into its AI infrastructure by investing in renewable energy projects and using AI itself to optimize energy grids to reduce carbon footprints while scaling operations. President Biden just days before leaving office, signed an order to expedite resources to support AI data centers. Partnerships are encouraged to pioneer green AI infrastructure that balances growth with environmental sustainability.
4. Talent - Human Ingenuity of AI
Even in the era of AI agents and the agentic web, AI systems can't really function without human creativity and the people who designed and built it. Top talent is the lifeblood of innovation including AI. The U.S. offers programs like the H-1B visa and world class universities which attract skilled engineers and data scientists and is a hub for global AI talent. The report suggests targeting immigration policies to attract AI professionals. Reskilling programs need to be funded to transition displaced workers from automation into AI-related jobs. Support for entrepreneurship in AI via grants, accelerators and public-private innovation hubs.
Early Reactions
The economic blueprint has sparked discussion online from policymakers to industry experts and leaders. Many have lauded the blueprint for its approach to maintaining U.S. competitiveness via economic zones. Some are warning that such a strong focus to counter China's AI advancements may escalate geopolitical tensions, hurting global collaboration. Overall, the blueprint represents a 'think big' and ambitious vision but raises key questions about national priorities, energy sustainability and global cooperation.
Takeaways for Canada
- Ethical leadership as a differentiator - Canada has a positive, global reputation for ethical AI and can use that to differentiate itself globally by advocating for AI systems that prioritize transparency, fairness, and accountability. This would attract more international collaborators and funding and boost Canada's leadership in ethical AI governance and responsible AI development.
- Infrastructure investments - Canada should address gaps in infrastructure to compete effectively by investing in renewable powered data centers and forming strong partnerships with semiconductor manufacturers. Canada can use its abundant renewable energy resources to develop green AI infrastructure and double down on its commitment sustainability.
See: Canada’s $300M AI Funding Targets SMEs for Growth
- Attract and develop talent - Canada should be expanding it's global talent stream and offering incentives to attract and retain AI professionals to combat brain drain as a result of recently tightening immigration policies and university caps. Funding should be mobilized to support AI education programs and reskilling initiatives to ensure a robust talent pipeline and to manage displaced workers by automation.
- Diversity partnerships with strategic trade alliances - build AI specific trade agreements with the U.S. to amplify cross-border collaborations with shared innovation in mind. Diversify global partnerships with the EU, Japan and other emerging economies to reduce reliance on a single market/U.S.
- Public-Private collaboration - continue and strengthen partnership between government and industry to grow and scale AI solutions in key sectors impacting Canada from healthcare to finance and agriculture. Bridge the gap between research and commercialization to help Canadian companies compete globally.
Conclusion
As the U.S. accelerates its AI ambitions, Canada must adapt its strategy to its unique advantages and challenges to secure its AI future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
