Chair, members of the committee, my name is Lawrence Lerner here today on behalf of myself as a venture capitalist, business executive and a resident of Washington state. I've worked in emerging technologies for my entire career.
I am speaking in support of SB 6065 - Establishing the Washington blockchain workgroup.
Over the past 30 years emerging technologies have created generational economic empowerment to the states in which the businesses reside. They leave a legacy of wealth, growth and new jobs along the lines of what agriculture has done for this state over many decades. Blockchain is a technology that has the opportunity to create an opportunity for Washingtonians.
Some examples
- HSBC - A global bank with operations in 65 counties. In just one asset class of $50B; $20B were moved onto a blockchain for asset management
- Walmart continues to expand its mandatory use of blockchain in Food Safety. All of its partners and their partner's partners must use their blockchain for green vegetables
- TicketMaster wants to put 400 - 500 M tickets on a blockchain. Last they prototyped it with Pearl Jam tickets
- “We want people to like our products. It’s not about the technology for the end-users.” - They are taking a business-first tact
- Microsoft, Amazon, Boeing, IBM and many other companies are investing in building and training their staff
- Ethereum - Most common blockchain platform just passed one million developers
- TrustedKey, a local company, was sold to WorkDay a leader in SaaS-based HR software. We lost the talent to the Bay area
- A 2015 WTIA study, the largest tech industry association in the US, reports that for every one tech job, 2.7 jobs
in the wider economy are created
Governments locally and abroad adopt blockchain
- Wyoming has declared itself the "Delaware of Digital Law"
- Illinois - has followed us and allowed smart contract recognition
- China
- Tencent - Working with the Chinese government to support taxes on blockchain
- Shenzen province allows evidence for their legal system to be entered on the blockchain
- Canada - Seven Canadian banks provide a common identity solution for customers
Not one of these initiatives are here in Washington, yet
However, among all this prosperity we find prices in some parts of Seattle and surrounding areas to have spiraling prices. The price differential in the war for talent creates inequity. As you think about this workgroup, I urge you to consider the broader aspects
- Improve and support education programs in our K - 12 programs for a wider range of Washington state citizens
- Improve SEZ - Special Economic Zones
- Designate areas in the non-central parts of the I-5 corridor and eastward for development
- Create workforce packages and get ahead of the problem. If we don’t then the federal government may do it and we may not like their guidance
Within its charter, SB 6055 calls for investigation of several business first initiatives for Blockchain. Healthcare and Public Recording Keeping, in particular, have an opportunity to empower residents through narrowing the gap of access to services, jobs, licenses and a host of many other our services for our residents.
A 2018 report in the
Spokane Journal of Business
indicates 4% unbanked and 21% underbanked (those without the full range of banking services and who may fall prey to nefarious loan and credit operations) in Washington. We have the ability to create finance and credit opportunities for more than 20% (1.4M people) of our state. Blockchain initiatives also reduce underemployment through credentialing of skills as my colleagues from T-Mobile and the Real Estate industry have indicated.
Washington is a state with world-class talent yet recognition and consolidated leadership in key areas is often unacknowledged or rewarded with outsiders. We have failed to capitalize on our brand and position as the undisputed leader/center in cloud technologies and standards. Let's take this opportunity to do so with blockchain/distributed ledger technologies.
I have first-hand experience building companies using emerging technologies; it creates economic empowerment, over 8,000 jobs in my career. Please consider the opportunity blockchain creates for a broad population in our state.
Thank you again for your time and consideration. My colleagues and I are excited to continue the public-private partnership.
I am available to answer any questions.
Onward.
