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Former Georgian PM: Blockchain is the steam engine of Industry 4.0

Former Georgian PM: Blockchain is the steam engine of Industry 4.0

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Georgia’s former prime minister is bullish on blockchain and its potential for the future of society.

Located at the intersection between Europe and Asia, Georgia is a small country with a big mission to drive blockchain adoption and education. In February 2017, the government of Georgia made a bold move by signing an agreement to use the Bitcoin blockchain to record land titles, making it the first national government to use blockchain for authenticating state operations.

Georgia’s innovation didn’t stop there, rather continuing to grow as the country became a powerhouse for mining crypto. Then, in June 2019, the government of Georgia signed a memorandum of understanding with blockchain technology firm Input Output Hong Kong, or IOHK, to advance blockchain projects across government sectors, with a large focus on education.

Many of these innovations took place when Mamuka Bakhtadze served as the country’s prime minister, between June 2018 through September 2019. Cointelegraph had the pleasure of sitting down with Bakhtadze to learn more about his goals to drive blockchain innovation and education.

Rachel Wolfson: How did you start implementing blockchain and digital currencies into policy when you were Prime Minister of Georgia?

Mamuka Bakhtadze: This actually started before I became prime minister of Georgia. Georgia is the first country that introduced blockchain technology in public services. That happened a few years ago, when we partnered with the blockchain company Bitfury.

Our Ministry of Justice implemented Bitfury’s blockchain to register and verify property transactions. This was the first time not only for Georgia, but for any state to implement blockchain in the public services sector.

RW: You recently spoke at the virtual Davos event this year about taking blockchain further; what can the future hold?

MB: Georgia is a very good example of the limitless opportunities associated with blockchain, especially within the public services sector. Currently, we are implementing a very important project in the education sector together with IOHK and Charles Hoskinson, who is a very good friend of Georgia. Together with the Ministry of Justice and Minister for Education, we are implementing the credentials verification project. The team is using a Cardano-backed blockchain for this.

“Overall, we have a vision to make Georgia a regional hub for business, trade, tourism and finance, which are all important for innovation. It’s also important for the companies who are involved in innovation here to have access to a pool of talented individuals.”

When you want to make a transformation for your country, it’s very important to have a national idea that will consolidate the energy and effort required for it. In our opinion, this was education. In 2019, we initiated an education reform, and now, according to our legislation, it is mandatory for any government to invest 6% of GDP in education, which is around 25% of our budget.

So education is really a big element for Georgia. With this reform, we hope that we will be able to position Georgia as a hub for innovation, and blockchain plays a large role in this. The project that we are doing now with the Input Output team is very important from that perspective.

RW: Is Cardano and IOHK also setting up an education center in Georgia, where they’re teaching students about blockchain and then providing career opportunities?

MB: This is part of phase two of the plan. The first phase, as I have mentioned, is to finalize this project for credentials verification. The next phase will focus on the skill-building process for Georgians who would like to become part of this great initiative.

RW: Is the Georgian government also looking to implement blockchain solutions to revive tourism and travel that may have been impacted by COVID-19?

MB: Tourism is a very important industry for Georgia. Our population is less than 4 million people, and last year, we hosted more than 9 million visitors. So, tourism is really a very important industry for both the country and our economy.

I think blockchain can provide some very interesting solutions to this problem. Many countries are now trying to get data showing whether people have been tested for COVID-19. They also want information to show whether people have been living in so-called “high-risk” zones. At the same time, this is very sensitive data. Therefore, the security and safety measures of how to use this data is very important.

Blockchain can provide some interesting solutions for countries like Georgia who are so dependent on tourism. I know that there are some Asian countries that are working very intensively on these solutions. Georgia should also determine which technologies we will have to use to increase our visitors again. I think that blockchain would be the right answer to this question.

RW: What are your thoughts on Bitcoin and cryptocurrency in general, and how is this being applied in Georgia?

MB: I’m a strong advocate for digital currencies and I have many strong arguments for being so supportive. It’s a fact that we are living in the era of the Fourth Industrial Revolution. Digital currencies are an inevitable part of this era. At the same time, the lessons learned from the previous industrial revolutions are very interesting.

“The technologies introduced in the first industrial revolution were struggling for decades to close the economic gap that stood between them and industrial relations. Still, the gaps that we are observing between countries and economies have the same roots. Therefore, it’s my understanding that the fourth industrial revolution is the greatest opportunity of all.”

However, for countries like Georgia, the use of digital currencies — an organic part of the fourth industrial revolution — should become part of the transformation for both nations and their economies. Moreover, what we are learning now from the COVID-19 pandemic shows that the global economy needs digital currencies and cryptocurrency, which will make transactions safer and more efficient. Therefore, I think that it’s an inevitable process.

Of course, there are a lot of barriers, and I really do hope to see more of an open-minded approach from governments and regulators when it comes to digital currencies. But the bottom line is that all of us should understand that this move is inevitable. The countries who will be more supportive of digital currencies and cryptocurrencies will have a very significant competitive advantage in the 21st century. Georgia cannot afford to miss this opportunity.

RW: So would you say Georgia is crypto-friendly? Are digital assets going to be adopted in Georgia earlier than other places in the world?

MB: I’m optimistic about this, and just to finalize the comparison I made with the first industrial revolution, I think another big part of this will be blockchain adoption. Blockchain will have the same impact as the steam engine had during the first industrial revolution. The first industrial revolution was powered by the steam engine and the fourth industrial revolution will be powered by blockchain. That’s really a game changer.

When it comes to regulations, politicians everywhere in the world and in Georgia should be more open-minded. Once again, the pandemic has shown us why. The global economy needs digital currencies now.

“The minister of finance, together with my team, have crafted a brief concept of what type of national digital currency Georgia could have. I do hope that one day in the future, this project will be implemented.”

There are also a number of other initiatives. Of course, I would like to see Georgia as a frontrunner when it comes to blockchain and digital currencies.

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Looking Back At COVID’s Authoritarian Regimes

After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked,…

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After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked, in March 2020, when President Trump and most US governors imposed heavy restrictions on people’s freedom. The purpose, said Trump and his COVID-19 advisers, was to “flatten the curve”: shut down people’s mobility for two weeks so that hospitals could catch up with the expected demand from COVID patients. In her book Silent Invasion, Dr. Deborah Birx, the coordinator of the White House Coronavirus Task Force, admitted that she was scrambling during those two weeks to come up with a reason to extend the lockdowns for much longer. As she put it, “I didn’t have the numbers in front of me yet to make the case for extending it longer, but I had two weeks to get them.” In short, she chose the goal and then tried to find the data to justify the goal. This, by the way, was from someone who, along with her task force colleague Dr. Anthony Fauci, kept talking about the importance of the scientific method. By the end of April 2020, the term “flatten the curve” had all but disappeared from public discussion.

Now that we are four years past that awful time, it makes sense to look back and see whether those heavy restrictions on the lives of people of all ages made sense. I’ll save you the suspense. They didn’t. The damage to the economy was huge. Remember that “the economy” is not a term used to describe a big machine; it’s a shorthand for the trillions of interactions among hundreds of millions of people. The lockdowns and the subsequent federal spending ballooned the budget deficit and consequent federal debt. The effect on children’s learning, not just in school but outside of school, was huge. These effects will be with us for a long time. It’s not as if there wasn’t another way to go. The people who came up with the idea of lockdowns did so on the basis of abstract models that had not been tested. They ignored a model of human behavior, which I’ll call Hayekian, that is tested every day.

These are the opening two paragraphs of my latest Defining Ideas article, “Looking Back at COVID’s Authoritarian Regimes,” Defining Ideas, March 14, 2024.

Another excerpt:

That wasn’t the only uncertainty. My daughter Karen lived in San Francisco and made her living teaching Pilates. San Francisco mayor London Breed shut down all the gyms, and so there went my daughter’s business. (The good news was that she quickly got online and shifted many of her clients to virtual Pilates. But that’s another story.) We tried to see her every six weeks or so, whether that meant our driving up to San Fran or her driving down to Monterey. But were we allowed to drive to see her? In that first month and a half, we simply didn’t know.

Read the whole thing, which is longer than usual.

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The hostility Black women face in higher education carries dire consequences

9 Black women who were working on or recently earned their PhDs told a researcher they felt isolated and shut out.

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Isolation can make opportunities elusive. fotostorm via Getty Images

Isolated. Abused. Overworked.

These are the themes that emerged when I invited nine Black women to chronicle their professional experiences and relationships with colleagues as they earned their Ph.D.s at a public university in the Midwest. I featured their writings in the dissertation I wrote to get my Ph.D. in curriculum and instruction.

The women spoke of being silenced.

“It’s not just the beating me down that is hard,” one participant told me about constantly having her intelligence questioned. “It is the fact that it feels like I’m villainized and made out to be the problem for trying to advocate for myself.”

The women told me they did not feel like they belonged. They spoke of routinely being isolated by peers and potential mentors.

One participant told me she felt that peer community, faculty mentorship and cultural affinity spaces were lacking.

Because of the isolation, participants often felt that they were missing out on various opportunities, such as funding and opportunities to get their work published.

Participants also discussed the ways they felt they were duped into taking on more than their fair share of work.

“I realized I had been tricked into handling a two- to four-person job entirely by myself,” one participant said of her paid graduate position. “This happened just about a month before the pandemic occurred so it very quickly got swept under the rug.”

Why it matters

The hostility that Black women face in higher education can be hazardous to their health. The women in my study told me they were struggling with depression, had thought about suicide and felt physically ill when they had to go to campus.

Other studies have found similar outcomes. For instance, a 2020 study of 220 U.S. Black college women ages 18-48 found that even though being seen as a strong Black woman came with its benefits – such as being thought of as resilient, hardworking, independent and nurturing – it also came at a cost to their mental and physical health.

These kinds of experiences can take a toll on women’s bodies and can result in poor maternal health, cancer, shorter life expectancy and other symptoms that impair their ability to be well.

I believe my research takes on greater urgency in light of the recent death of Antoinette “Bonnie” Candia-Bailey, who was vice president of student affairs at Lincoln University. Before she died by suicide, she reportedly wrote that she felt she was suffering abuse and that the university wasn’t taking her mental health concerns seriously.

What other research is being done

Several anthologies examine the negative experiences that Black women experience in academia. They include education scholars Venus Evans-Winters and Bettina Love’s edited volume, “Black Feminism in Education,” which examines how Black women navigate what it means to be a scholar in a “white supremacist patriarchal society.” Gender and sexuality studies scholar Stephanie Evans analyzes the barriers that Black women faced in accessing higher education from 1850 to 1954. In “Black Women, Ivory Tower,” African American studies professor Jasmine Harris recounts her own traumatic experiences in the world of higher education.

What’s next

In addition to publishing the findings of my research study, I plan to continue exploring the depths of Black women’s experiences in academia, expanding my research to include undergraduate students, as well as faculty and staff.

I believe this research will strengthen this field of study and enable people who work in higher education to develop and implement more comprehensive solutions.

The Research Brief is a short take on interesting academic work.

Ebony Aya received funding from the Black Collective Foundation in 2022 to support the work of the Aya Collective.

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US Economic Growth Still Expected To Slow In Q1 GDP Report

A new round of nowcasts continue to estimate that US economic activity will downshift in next month’s release of first-quarter GDP data. Today’s revised…

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A new round of nowcasts continue to estimate that US economic activity will downshift in next month’s release of first-quarter GDP data. Today’s revised estimate is based on the median for a set of nowcasts compiled by CapitalSpectator.com.

Output for the January-through-March period is currently projected to soften to a 2.1% increase (seasonally adjusted annual rate). The estimate reflects a substantially softer rise vs. Q4’s strong 3.2% advance, which in turn marks a downshift from Q3’s red-hot 4.9% increase, according to government data.

Today’s revised Q1 estimate was essentially unchanged from the previous Q1 nowcast (published on Mar. 7). At this late date in the current quarter, the odds are relatively high that the current median estimate is a reasonable guesstimate for the actual GDP data that the Bureau of Economic Analysis will publish in late-April.

GDP rising at roughly a 2% pace marks another slowdown from recent quarters, but if the current nowcast is correct it suggests that recession risk remains low. The question is whether the slowdown persists into Q2 and beyond. Given the expected deceleration in growth on tap for Q1, the economy may be flirting with a tipping point for recession later in the year. It’s premature to make such a forecast with high confidence, but it’s a scenario that’s increasingly plausible, albeit speculatively so for now.

Yesterday’s release of retail sales numbers for February aligns with the possibility that even softer growth is coming. Although spending rebounded last month after January’s steep decline, the bounce was lowr than expected.

“The modest rebound in retail sales in February suggests that consumer spending growth slowed in early 2024,” says Michael Pearce, Oxford Economics deputy chief US economist.

Reviewing retail spending on a year-over-year basis provides a clearer view of the softer-growth profile. The pace edged up to 1.5% last month vs. the year-earlier level, but that’s close to the slowest increase in the post-pandemic recovery.

Despite emerging signs of slowing growth, relief for the economy in the form of interest-rate cuts may be further out in time than recently expected, due to the latest round of sticky inflation news this week.

“When the Fed is contemplating a series of rate cuts and is confronted by suddenly slower economic growth and suddenly brisker inflation, they will respond to the new news on the inflation side every time,” says Chris Low, chief economist at FHN Financial. “After all, this is not the first time in the past couple of years consumers have paused spending for a couple of months to catch their breath.”


How is recession risk evolving? Monitor the outlook with a subscription to:
The US Business Cycle Risk Report


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