Tag: transformation

Innovation & Business Jochen Werne Society & Diplomacy

Harnessing Data for Good

Jochen Werne August 1, 2023

After my first week as CEO for Experian in the DACH region (Germany, Austria, and Switzerland), I find myself profoundly thankful for the warm welcome and the many highly inspiring encounters with some of the best data and technology professionals on our planet. Experian is not only a data insights industry titan, one that operates in 32 countries, employs over 20,000 outstanding personalities worldwide but would also rank with its more than USD 30 billion market capitalisation compared to Germany’s leading stock index as the 19th largest DAX company in Germany. Experian serves as a global leader millions of consumers and businesses, leveraging data to make a transformative difference in people’s lives.

Yet, with tremendous reach and influence comes immense responsibility.

Reflections

Just as the Age of Enlightenment in the 18th century reshaped society through the dissemination of knowledge, we find ourselves at the precipice of a new era, one marked by the power and potential of data. The 21st century, in my view, must herald a fresh Age of Enlightenment, one underpinned by data literacy.

The Age of Enlightenment, Literacy and the Dawn of Data Literacy

The Age of Enlightenment, a period dating from the late 17th to the late 18th century, marked a profound shift in the course of human history. This era, also known as the Age of Reason, encouraged critical thinking, decoupling minds from the shackles of superstition and unquestioned authority. The spotlight was placed firmly on rational thought, scientific inquiry, and individual rights – underpinnings of the modern world as we know it.

Several factors catalyzed this significant shift, not least of which was the advent and proliferation of printing technology. As philosopher Immanuel Kant noted, “Dare to know! Have the courage to use your own understanding,” a statement that encapsulates the Enlightenment’s spirit. This courage was largely fostered through increasing literacy rates.

The advent of the printing press revolutionized the dissemination of information. Books were no longer a luxury exclusive to the elite; knowledge became democratized. This sparked an increased demand for literacy. As more people learned to read, ideas were more freely exchanged, fueling a critical examination of existing societal structures.

For example, “The Encyclopédie,” a massive reference work edited by Denis Diderot and Jean le Rond d’Alembert, exemplified the spread of Enlightenment thinking. Its contributors, including leading intellectuals like Voltaire and Rousseau, aimed to collate all the world’s knowledge into a single work, accessible to the common man. This unprecedented venture into free access to knowledge set the stage for many of the democratic, scientific, and industrial revolutions that followed.

Fast forward to the present day, we see parallels in the advent of the internet, a digital revolution that democratizes information at a scale unimaginable to the Enlightenment thinkers. However, this superabundance of information has led to a paradoxical effect. As stated by Nobel Laureate Herbert A. Simon, “a wealth of information creates a poverty of attention.”

In an age characterised by short attention spans and reactionary behaviour, the challenge lies not in accessing information but in sifting through its vastness to discern truth from falsehood. A study conducted by Microsoft, 2015, found that the average human attention span has dropped to eight seconds, primarily due to the digitalised lifestyle.

Like the literacy of the Enlightenment Age, the 21st century calls for a new form of literacy: data literacy.

In a world where data is hailed as the new oil, our ability to critically interpret, analyse, and question data is of paramount importance. This skill set empowers individuals and corporations to make informed decisions, a process integral to our society.

In a report by The Data Literacy Project of which also Experian is a partner, only 21% of the global working population was confident in their data literacy skills. This gap highlights the pressing need for an educational shift towards fostering data literacy, much like the push for literacy during the Enlightenment era.

In conclusion, as we navigate the information deluge, a new Age of Enlightenment beckons, one centered around data literacy. With this new ‘Enlightenment,’ we can harness the true potential of information abundance, steering our societies towards more informed, rational, and democratic spaces. As the Enlightenment thinker Voltaire wisely said, “Judge a man by his questions rather than by his answers.” This insight seems more pertinent now than ever.

Such a renewed Age of Enlightenment also draws inspiration from one of the original Enlightenment’s most influential thinkers, Immanuel Kant. As he famously stated, “Enlightenment is man’s emergence from his self-imposed immaturity.” To transpose his wisdom to our context, data literacy and the effective application of data might be seen as emergence from a state of technological immaturity.

Furthermore, in our modern context, the Enlightenment’s emphasis on reason and logic has a fascinating analogue in the field of artificial intelligence (AI). AI, a critical tool in making sense of complex data, is designed to mimic human reasoning, albeit on a scale and at speeds we could never achieve unaided. As such, it holds a pivotal role in our future, helping us glean insights from the vast sea of data.

However, while AI’s potential is significant, it further underlines the importance of data literacy. The algorithms that power AI are only as good as the data that feeds them. Poor understanding of data and its nuances can lead to skewed AI outputs, with far-reaching implications.

Leaders in data need to focus on responsible use of AI by promoting data literacy and improving understanding of the interplay between data and AI.

New Enlightenment, then, is a journey towards a mature, informed society that harnesses the power of data and AI for good. In this era, knowledge isn’t just power; it’s the key to creating a world where data and technology act as catalysts for positive change.

In this new age, data is not merely a collection of numbers, facts, or figures; it is a powerful tool for understanding and addressing the most pressing societal issues.

However, just as literacy was not universal during the initial Enlightenment, data literacy is not yet a universal skill. As a society, we need to foster an understanding of data, how it’s collected, how it’s used, and most importantly, how it can be used ethically and responsibly.

Harnessing Data for Good – The Experian way

Experian, as a data powerhouse, has a crucial role to play in this journey. Experian has been a pioneer in harnessing data for good, from helping individuals gain access to credit, to assisting businesses flourish, to aiding governments in delivering crucial services.

For the DACH region specifically, the path to growth is intertwined with our mission to empower individuals and corporations with data and to protect from risks. In our regional market in the heart of Europe, we see significant potential to enhance consumer and corporate credit, improve business services, and support governmental programs.

Trust, innovation and reliability go hand in hand

To achieve this goal, we need to aim high and develop state-of-the-art products like AiDRIAN, which, by intelligently combining and using the latest AI technologies and data, are able to protect customers from fraud with more than 99.9% accuracy. Developing trustworthy solutions is of paramount importance. Trust comes from long-term reliability and independent audits. For AiDRIAN, for example, Fraunhofer IPA audited the heart of the solution, the Transaction Miner. The machine learning model compares several hundred customer characteristics and then assesses the risk of a transaction. Millions of data records are evaluated in a matter of seconds. Fraunhofer therefore came to the test result that the Miner’s predictive power is comprehensible even to experts and leads to better decisions.

Such results are only achievable by having an exemplary team.

The Experian DACH team, which I had the pleasure of meeting during my first week, is made up of dedicated, forward-thinking people who understand that work is not just about data, but about using data as a tool for progress and prosperity. A team that is eager to innovate, build trust, and act as responsible stewards of the data – every single day. As we delve deeper into a new era, we should aim to be instrumental in fostering a society that uses data ethically, responsibly, and for the greater good.

The Enlightenment brought knowledge to the masses, revolutionizing societies, and shaping the modern world. It is my belief, a new Age of Enlightenment will bring data literacy to all, empowering societies in ways we are just beginning to imagine.

I am excited and honoured to be a part of this transformative journey.

Jochen Werne - New Joiner CEO DACH Experian
Innovation & Business Ocean & Passion Society & Diplomacy

Das Jahrzehnt der Transformation – Optimistische Perspektiven eines Umdenkens

Jochen Werne July 1, 2023

17. Carinthische Dialoge – Schloss Bach – 14.-16. Juli 2023

Es ist mir eine besondere Ehre den Eröffnungsvortrag der 17. Carinthischen Dialogen geben zu dürfen. Unter dem Leitthema “Das Jahrzehnt der Transformation – Optimistische Perspektiven eines Umdenkens” wird der Beitrag, “Ein neues Zeitalter der Aufklärung” drei inspirierende Tage einläuten.

Bei dieser bemerkenswerten Veranstaltung teilen sich die Bühne angesehenen Persönlichkeiten aus verschiedenen Fachbereichen. So wird Horst von Buttlar, Chefredakteur der Zeitschrift “Wirtschaftswoche” und Autor des Buches “Das grüne Jahrzehnt”, Veränderungen ausgelöst durch Krisen thematisieren.

Nobelpreisträger Anton Zeilinger, emeritierter Professor der Universität Wien, widmet sich dem spannenden Thema des Zufalls.

Ich möchte mich herzlich bei den Organisatoren, insbesondere bei Generalsekretärin Johanna Franz und Maximilian Franz, für die Einladung und ihre unermüdliche Arbeit zur Realisierung dieser bedeutsamen Veranstaltung bedanken.

Weitere Informationen zur Veranstaltung, einschließlich mehr Details zu den unten stehenden Referenten und des Programms, sind auf der Website der Carinthischen Dialoge https://www.carinthische-dialoge.at/aktuelles-programm/ zu finden.

ReferentInnen u. ModeratorInnen

Horst von Buttlar, Wissenschaftsjournalist und Chefredakteur der Zeitschrift Capital. Buchautor „Das grüne Jahrzehnt“, Berlin

Klemens Fheodoroff, Dr., FA für Neurologie, OA Gailtal-Klnik, Obmann bei Carinthischer Sommer, 2.stv. Vorsitzender der Gesellschaft zur Förderung interdisziplinärer Dialoge, Carinthische Dialoge

Bernhard Gaul, Journalist im innerpolitischen Ressort der Tageszeitung Kurier

Arnold Mettnitzer, Prof. Dr., Theologe, Psychotherapeut in eigener Praxis, freier Mitarbeiter des ORF, Autor zahlreicher Bücher, Wien

Michael Musalek, Univ.-Prof. Dr., Ordinarius für Allgemeine Psychiatrie, SFU Med Wien, Vorstand des Intistuts für Sozialästhetik und Psychische Gesundheit, SFU Wien u. Berlin

Elisabeth Juliane Nöstlinger – Jochum, Wissenschaftsjournalistin, Producerin von WissensART, Vorsitzende der Jury zur Vergabe des Watzlawick-Ringes, Mitglied in zahlreichen wissenschaftlichen und kulturellen Gremien, Wien

Manfred Prisching, Univ.-Prof. i.R., Dr. jur., Mag.rer.soc.oec., Institut für Soziologie der Universität Graz

Philipp Weiss, österreichischer Schriftsteller, u.a. Buch: „Am Weltenrand sitzen die Menschen und lachen“, Wien

Jochen Werne, Autor, Keynotespeaker, international ausgezeichneter NGO-Gründer und Spezialist im Bereich Unternehmenentwicklung und -transformation, sowie internationaler Diplomatie.

Anton Zeilinger, em. o. Univ.-Prof. Dr., Universität Wien und Österreichische Akademie der Wissenschaften

The Decade of Transformation – Optimistic Perspectives of a Rethink

17th Carinthian Dialogues – Bach Castle – 14-16 July 2023

It is a special honour for me to give the opening lecture of the 17th Carinthian Dialogues. Under the guiding theme “The Decade of Transformation – Optimistic Perspectives of a Rethinking”, the contribution, “A New Age of Enlightenment” will usher in three inspiring days.
At this remarkable event, the stage will be shared by respected personalities from various fields. Horst von Buttlar, editor-in-chief of the magazine “Wirtschaftswoche” and author of the book “The Green Decade”, will address changes triggered by crises. Nobel Prize winner Anton Zeilinger, professor emeritus at the University of Vienna, will address the exciting topic of chance.
I would like to express my sincere thanks to the organisers, especially Secretary General Johanna Franz and Maximilian Franz, for the invitation and their tireless work to realise this momentous event.
Further information on the event, including more details on the speakers below and the programme, can be found on the Carinthian Dialogues website https://www.carinthische-dialoge.at/aktuelles-programm/.

Jochen Werne Ocean & Passion Society & Diplomacy

Expedition Andaman Sea supports UNEP’s Clean Seas Initiative

Jochen Werne April 25, 2023

Andaman Sea Beach Cleaning

Following the inspiring examples of only.one, beachcleaner.de, blue-awareness.com and many others, the Global Offshore Sailing Team also followed its long-standing tradition of standing up for the sea by supporting UNEP’s Global Goals during Expedition Andaman Sea 2023. The Expedition Corps consisted of Guido Zoeller, Jochen Werne, Benon Janos, Marco Schroeter, Sascha Adam, Sven O. Mueller, Sven Streiter, Christoph Impekoven and Viktor Metz.

On 19 April 2023, the team landed on the remote tiny southern beach of Ko Hi. Despite its remoteness, the beach contained an enormous amount of plastic waste that had accumulated there over the years. The team cleaned parts of the beach and brought everything possible to the base, where it is now sent to the recycling process.

UNEP’s Clean Seas Initiative and the Valiant Efforts of the Global Offshore Sailing Team

The United Nations Environment Programme’s (UNEP) Clean Seas Initiative is a vital global effort aimed at combating marine plastic pollution, a pressing environmental issue that threatens the health of our oceans and marine life. By rallying governments, businesses, and individuals to take decisive action, the Clean Seas Initiative is making significant strides towards achieving the Sustainable Development Goals (SDGs), particularly Goal 14: Life Below Water. A shining example of dedicated environmental stewardship is the Global Offshore Sailing Team (GOST), whose remarkable contributions have been recognized with the prestigious Bavarian States Medal.

Launched in 2017, UNEP’s Clean Seas Initiative has been instrumental in raising awareness and promoting effective solutions to tackle marine pollution. It engages stakeholders at various levels, encouraging them to adopt sustainable practices, reduce plastic production and consumption, and implement policies that protect the world’s oceans. As a result, the initiative has made considerable progress in fulfilling the targets set under SDG 14, which focuses on conserving and sustainably using marine resources.

The Global Offshore Sailing Team, a passionate group of sailors and environmentalists, has been a crucial ally in this fight against marine plastic pollution. Through their expeditions, GOST has taken the message of the Clean Seas Initiative to the most remote and inaccessible parts of the world’s oceans. Their dedication to raising awareness, conducting research, and collecting vital data on the impact of plastic pollution on marine ecosystems is unparalleled.

Throughout their journeys, GOST has engaged with local communities, schools, and institutions, empowering them with knowledge and resources to join the battle against marine pollution. They have also forged partnerships with various organizations, further amplifying the reach and impact of the Clean Seas Initiative.

In recognition of their unwavering commitment to environmental conservation, the Global Offshore Sailing Team was recently awarded the Bavarian States Medal. This prestigious honor reflects the immense value of GOST’s work in championing the goals of the UNEP’s Clean Seas Initiative and their broader contributions to the global sustainability agenda.

The achievements of the Clean Seas Initiative and the Global Offshore Sailing Team are a testament to the power of collective action in addressing the urgent issue of marine plastic pollution. Their inspiring efforts serve as a reminder that every individual, community, and organization has a role to play in safeguarding the health of our oceans and preserving them for future generations.

Innovation & Business Press & Publications

Journal of Digital Banking: Same Game – Same Rules?

Jochen Werne March 29, 2023

It was a pleasure contributing once again to a Henry Stewart Publication. This time in co-authorship (Christoph Impekoven & Jochen Werne) we delineate for the Journal of Digital Banking the differences between stablecoins, in particular, and ‘fiat’ currencies, in general. When you have read this paper, you will know what a stablecoin is, what types there are, how it differs from the US dollar or the euro and why the most important currency in all worlds is ‘trust’.

The Journal can be bought online HERE

Journal of Digital Banking

Journal of Digital Banking is the major professional journal publishing in-depth, peer-reviewed articles and case studies on FinTech innovation, digital disruption and how to develop a profitable, customer-focused digital banking strategy – specifically by using technology and automation to deliver efficient, secure and seamless customer experiences with lower operating costs.

Each quarterly 100-page issue – published in print and online – will feature detailed, practical articles showcasing the latest strategic thinking on how to exploit new and existing digital banking markets, business models and FinTech innovations along with actionable advice and ‘lessons learned’ from fellow digital banking professionals on the key business, risk and operational requirements for putting that strategy into practice. It will not publish advertising but rather in-depth analysis of new thinking and practice at a wide range of financial institutions, FinTech innovators and start-ups, investors, central banks and financial regulators worldwide for readers to benchmark their organisation against, with every article being peer-reviewed by an expert Editorial Board to ensure that it focuses on the digital banking professional’s perspective, the challenges they face and how they can tackle them.

Journal of Digital Banking is listed in Cabells’ Directories of Publishing Opportunities.  

Journal of Digital Banking is abstracted and indexed in the Research Papers in Economics (RePEc) database IDEAS

As such Journal of Digital Banking publishes articles on:

  • Innovative digital payment services
  • FinTech innovation
  • Digital payments product management
  • AI and machine learning
  • Mobile banking and apps
  • Blockchain
  • Open banking
  • Customer service, personalisation and user experience
  • Digitisation initiatives and replacing legacy systems
  • Investing in digital banking start-ups
  • Big Data and analytics
  • Risk, fraud and security
  • Regulation and compliance
  • Barriers to consumer adoption and how to overcome them
  • Standardisation initiatives
  • Digital, alternative and cryptocurrencies
  • Business models and partnerships
  • Digital banking operations and services

Rather than publishing advertising or the ‘bite-sized’ articles all too common on the internet, Journal of Digital Banking provides in-depth guidance and analysis on the key issues facing financial services in today’s rapidly evolving digital world, with high-quality articles from leading banks and other financial institutions, FinTech innovators and startups, central banks, financial regulators, investors, consultants and service providers, plus researchers and educators in the field.

Essential reading for Departmental Heads, Directors, Managing Directors, VPs, SVPs, EVPs and Senior Managers of:

  • Digital strategy
  • Digital banking
  • Mobile payments
  • Online banking
  • Payments innovations
  • Marketing
  • Customer insights and analytics
  • User experience
  • Payments
  • Social media
  • Payments strategy
  • Product management/strategy
  • Transaction banking
  • Payments operations and services
  • Payment systems; as well as
  • Presidents, CEOs, CTOs, CFOs, COOs and CIOs
Innovation & Business Press & Publications

Far-reaching influence: German AI experts quoted in Korean “theSCIENCEplus” blog article “ChatGPT – Breakthrough or Hype?”

Jochen Werne March 19, 2023

In March 2023, the Korean blog “theSCIENCEplus” by Moon Kwang-ju published the article “ChatGPT – Breakthrough or Hype”. The article is based on the argumentation of the scinexx article “ChatGPT and Co – Opportunity or Risk?” by Nadja Podregar and refers to insights from leading German experts such as Johannes Hoffart, Thilo Hagendorff, Ute Schmid, Jochen Werne et al. Most of these experts are also organised in Germany’s leading AI platform “Learning Systems”.

Please find theORIGINAL ARTICLE HERE and a translation from Korean to English created with the German AI-platform DeepL.com below

Read 3’40”

ChatGPT – Opportunity or Risk?

Features and consequences of a new AI system

ChatGPT can write poems, essays, professional articles, or even computer code. AI systems based on large-scale language models like ChatGPT achieve amazing results, and the text is often almost indistinguishable from human work. But what’s behind GPT and its ilk? And how intelligent are such systems really?

Artificial intelligence has made rapid progress in recent years. The system, which is based on a combination of artificial neural networks, has been accessible via the Internet since November 2022, so it was only through ChatGPT that many people realised what AI systems can already do. His impressive achievements sparked a new debate about the opportunities and risks of artificial intelligence. This is another reason to reveal some facts and background information about ChatGPT and its “identities”.

Artificial Intelligence, ChatGPT, and the Results “Breakthrough or Hype?”

“In my first conversation with ChatGPT, I couldn’t believe how well my questions were understood and put into context.” These are the words of Johannes Hoffart, head of SAP’s AI department. OpenAI’s AI system has been causing sensation and amazement around the world since it first became accessible to the general public via a user interface in November 2022.

A flood of new AI systems

In fact, thanks to neural networks and self-learning systems, artificial intelligence has made huge strides in recent years. AI systems have also made tremendous progress in the human domain, whether it’s mastering strategy games, deciphering protein structures, or writing programme code. Text-to-image generators like Dall-E, Stable Diffusion, or Midjourney create images and collages in the desired style in seconds based solely on textual descriptions.

Perhaps the biggest leap in development has been in language processing. So-called Large Language Models (LLMs) have been developed to date, allowing these AI systems to carry out dialogues, translate texts, or write texts in an almost human-like form. These self-learning programmes are trained using millions of texts of all kinds and learn which content and words occur most often and in which context, and are therefore most relevant.

What does ChatGPT do?

The most well-known of these major language models is GPT-3, the system behind ChatGPT. At first glance, this AI seems to be able to do almost anything. It answers all kinds of knowledge questions, but it can also solve more complex linguistic tasks. For example, if you ask ChatGPT to write a 19th-century novel-style text on a particular topic, it will do so. ChatGPT also writes school essays, scientific papers, or poems with ease and without hesitation.

OpenAI, the company behind ChatGPT, lists about 50 different types of tasks that a GPT system can perform. These include writing texts in different styles, from film dialogues to tweets, interviews or essays, “micro-horror story creators” or “critiquing chatbot Marv”. The AI system can also write recipes, find colours to match your mood, or be used as an idea generator for VR games and fitness training. GPT-3 is also programmable and can convert text into program code in a variety of programming languages.

Just the tip of the iceberg

It’s no surprise that ChatGPT and its “colleagues” are hailed by many as a milestone in AI development, but can GPT-3 and its successor GPT-3.5 really make such a quantum leap? “In a way, it’s not a big change,” said Tilo Hagendorf, an AI researcher at the University of Tübingen. Similarly powerful language models have been around for a long time. “But what’s new now is that companies have dared to attach such language models to a simple user interface.”

Unlike before, when such AI systems were only tested or used in narrowly defined, private areas, ChatGPT now allows everyone to try out for themselves what is already possible with GPT and its ilk. “This user interface is really what started all this crazy hype,” Hagendorff said. In his assessment, ChatGPT is definitely a game changer in this regard. Because now other companies will offer their language models to the general public. “And then the creative potential that will be unleashed, the social impact it will have, I don’t think we know anything about that.”

Consequences for education and society

The introduction of ChatGPT is already causing considerable upheaval and change, especially in education. For pupils and students, AI systems now open up the possibility of having homework, school essays, or seminar reports that are simply prepared by artificial intelligence. The quality of many ChatGPT texts is such that they are not easily exposed as AI-generated.

As a result, many classical forms of learning success control may become obsolete in the near future. Schmidt, head of the Cognitive Systems working group at the University of Bamberg. Until now, knowledge learnt at school, and sometimes even at university, has mainly been tested by simple queries. However, competences also include the derivation, verification, and practical application of what has been learnt. In the future, for example, it may make more sense to conduct test interviews or set tasks involving AI systems.

“Large-scale language models like ChatGPT are not only changing the way we interact with technology, but also the way we think about language and communication,” said Jochen Werne of Prosegur. “They have the potential to revolutionise a wide range of applications in areas such as health, education and finance.”

Innovation & Business Jochen Werne

METAVERSE. Hype or Disruptive Technology?

Jochen Werne February 23, 2023

It is my great pleasure to join some of Europe’s leading B2B marketing and e-commerce experts at this year’s PROJECT NETWORKS STRATEGY SUMMIT to discuss the potential that arises from technological advances and initiatives such as the Metaverse. In the introductory keynote on the topic, I will explore the following topics in more depth:

Keynote: METAVERSE. Hype or all-changing?

The History of the Metaverse: From Snow Crash to Google Maps and Mark Zuckerberg’s $10 billion visions of a digital world.
Is the Metaverse becoming a reality?
Data: Be prepared – The Metaverse will increase the demand for for data engineers and AI developers
Marketing in the Metaverse

For everyone who‘s already interested to prepare for the disussion, a quick introduction by OpenAI‘s ChatGPT to the topic: METAVERSE. Hype or Disruptive Technology

The metaverse is a term that has gained popularity in recent years. It refers to a virtual world where people can interact with each other through avatars and digital goods. Some consider the metaverse to be hype, others see it as a breakthrough technology that will change various aspects of our lives. This paper will explore the concept of the metaverse and evaluate whether it is hype or a disruptive technology.

First of all, it is important to understand what the metaverse is and how it works. The metaverse is a collective, virtual, shared space created through the convergence of various technologies, including augmented reality (AR), virtual reality (VR), blockchain and the Internet of Things (IoT).^1 The metaverse provides a multidimensional experience that allows users to interact in real time with each other, digital assets and real objects. The idea of the metaverse is not new and has already been taken up in various media such as films, video games and books. However, recent technological advances have made it possible to create a metaverse that is closer to reality.

One of the main arguments for the metaverse being hype is that it is still at an early stage of development and there is much speculation about its possible uses. Currently, the best-known example of the metaverse is the popular online game Second Life, which was launched in 2003.^2 Second Life has successfully created a virtual world in which users can interact with each other, but it has not had a significant impact on the real world. Moreover, current applications of the metaverse are limited to games, social networking and digital art. This has led some to believe that the metaverse is hype and will not have a significant impact on society.

On the other hand, the metaverse has the potential to be a disruptive technology that will change various aspects of our lives. One of the most important areas where the metaverse could have an impact is the economy. The metaverse enables the creation and exchange of digital goods that can have real value. This has led to the emergence of non-fungible tokens (NFTs), which are unique digital assets that can be bought and sold on the blockchain. By 2021, the market for NFTs reached $2.5 billion, and is expected to continue growing in the coming years.^3 The metaverse has also opened up new opportunities for businesses, including virtual real estate, advertising and e-commerce.

Another area where the metaverse could have an impact is education. The metaverse offers a new way of learning that is immersive and interactive. For example, students could use the metaverse to research historical events, visit different countries or even explore space. This would allow for a more engaging and memorable learning experience that could lead to better academic outcomes.

In conclusion, although considered hype by some, the metaverse has the potential to be a disruptive technology that will change various aspects of our lives. The metaverse offers a new way of interacting with each other, with digital goods and with the real world. It has the potential to revolutionise business, education and other areas of our lives. Although the metaverse is still at an early stage of development, it is clear that it will continue to be of interest to researchers, entrepreneurs and investors in the years to come.

Sources:

Al-Rikabi, A. (2020). Metaverse: A virtual shared space. Advanced Science News, 7(9), 1903421.
Wagner, J. (2021). The story of the metaverse. VentureBeat.
Statista. (2021). Market capitalisation of non-fungible tokens

Innovation & Business Press & Publications

Hot off the press: What makes a stablecoin

Jochen Werne January 18, 2023

Author: Angelika Breinich-Schilly

Published on 11 January 2023 at Springer Professional – Follow this LINK to original text in German. Translation created with deepL.com

Experts quoted in the article: Stefan Behringer, Leef H. Dierks, Florian Follert, Jochen Werne, Dr. Johannes Winter, Joachim Wurmeling

What distinguishes so-called stablecoins from cryptocurrencies like Bitcoin, Ether & Co? By linking to one or more currencies, this form of digital money forms a bridge to classic FIAT currencies. How this works and where problems lurk is shown in our “Compact explained”.

Stablecoins are digital tokens, assets of private issuers that can also take on money functions. According to Leef H. Dierks, they usually replicate the value of a reserve currency, such as the US dollar, or even a whole bundle of official currencies.

Thus, they do not have to represent a claim on the issuer (the reserve currency) itself, but can also be backed by demand deposits of various currencies, securities or other assets. This so-called peg reduces the volatility of stablecoins compared to classic virtual currencies, such as Bitcoin,” writes the Springer author in the book chapter “Virtual Currencies and Monetary Policy” on page 234.

According to Dierks, stablecoins take on a bridging function to fiat currencies, “especially since, as long as they are backed by legal tender, they do not challenge the currency monopoly of central banks (analogous to bank deposits) at any time”.

Stablecoins make new business models possible

According to a thesis paper by the Landesbank Baden-Württemberg (LBBW) from mid-December 2022, stablecoins do open up new business models. At the same time, however, they are “anything but stable, but are subject to the risk of the holders fleeing from them if there are doubts about their collateralisation”. Digital money may have a negative impact on macroeconomic lending and reduce the influence of central banks on the aggregate money supply. One way to regulate it is to require issuers to hold central bank reserves.

The best-known stablecoin project is Tether, which is pegged one-to-one to the US dollar. “There has been repeated criticism of Tether, so that the company behind the issue has since admitted to using not only currency holdings in US dollars to collateralise the issued units of cryptocurrencies, but also other assets (for example, commercial papers of companies),” Stefan Behringer and Florian Follert describe the background in the book chapter “Controlling of cryptocurrencies” (page 187). This also explains why this stablecoin does not correlate exactly with the performance of the US dollar.

Risks of stablecoins

Jochen Werne and Johannes Winter explain in the book chapter “Cash, book money, cryptocurrencies and the digital euro” on page 84 that there are risks for the financial sector if stablecoins become widespread. They could undermine the banks’ deposit business and their business models. The Springer authors see in the central bank cash-backed stablecoins a possibility of a trustworthy transitional solution in hybrid form. This is a stablecoin that demonstrably holds any digital twin in the form of central bank money.

“Due to the tradability of the tokens, the flexibility of book money is paired with the guarantee of physical central bank money. Even the expected damage from a successful attack on the underlying blockchain could thus be minimised, since an unlawful acquisition of power of disposal over assets is quickly restricted in its usability. A regulated expert function guarantees that only central bank money or a digital twin is traded and thus the central supervisory function always lies with the central bank,” say Werne and Winter.

MiCA forms future legal framework

With the Markets in Crypto Assets (MiCA) regulation, the European Union has sewn a legal garment for the crypto industry in the 26 EU states. The new EU regulation is to enter into force by the beginning of 2023 and become effective 18 months later vis-à-vis all market participants.

“MiCA responds to the growth of the cryptoasset ecosystem and integrates a large number of new players into the European supervisory space,” explains Joachim Wurmeling, member of the Executive Board of the Deutsche Bundesbank, in a guest article on the occasion of the Bundesbank Symposium in November 2022. “In future, crypto service providers and issuers of crypto assets will not only have to ensure that the risks arising from the cryptoasset business are adequately managed; they will also have to apply for authorisation to issue crypto assets or to provide crypto services and be subject to ongoing supervision.”

In addition, he said, the regulation also applies to traditional financial institutions that provide services around cryptoassets. The regulatory approach for MiCA is new and is emerging alongside the traditional structure.

Innovation & Business

Hybrid Seminar: Banking Use Cases of Blockchain Technology

Jochen Werne January 8, 2023

The participants of the seminar acquire knowledge that enables them as decision-makers to understand projects that are to use blockchain technology more quickly, to recognise opportunities and risks and to evaluate them together with experts.

It is a pleasure for me, as Managing Director of Prosegur Crypto GmbH, to support the seminar together with other leading blockchain experts such as Christoph Impekoven (micobo), Markus Honvehlmann (micobo), Dr. Marc Henniges (d-fine), Dr. Timo Bernau (GSK), Lucas Zaehringer (verity) and Cara Reuner (Ecota) to train banking experts to create future innovative use cases. We will discuss:

Digital Money

  • Central Bank Digital Money – Stable Coins
  • Programmable Money
  • E-Money Tokens

For more details please refer to the website of BZ-Live: https://www.bzlive.de/veranstaltung/1606//

Innovation & Business Jochen Werne Press & Publications Society & Diplomacy

Technological Breakthroughs: A Beacon of Hope for the Future

Jochen Werne December 18, 2022

After a challenging 2022 this year ends with HOPE due to a rally of technological innovation breakthroughs. Technological progress has the potential to help address many of the challenges facing the world today, including the energy crisis, the need for better education, and financial inclusion. Three of them shall be brought to your attention: 1. CLEAN ENERGY – Breakthrough in nuclear fusion technology; 2. EDUCATION – ChatGPT is changing the way to experience artificial intelligence; 3. PRIVACY & FINANCIAL INCLUSION – New compliant pathways for privacy and security in the blockchain-based financial ecosystem

Breakthrough in nuclear fusion technology

One area where technology is helping to address the energy crisis is through the development of nuclear fusion as a potential source of clean, abundant energy. Nuclear fusion is a process in which atomic nuclei combine to release energy, and it has the potential to provide a virtually limitless source of energy with low carbon emissions. While significant progress has been made in developing fusion technology, it is still in the early stages of development and has not yet been fully commercialized. However, the potential for nuclear fusion to help address the energy crisis makes it a promising area of research and development.

In December 2022 the National Ignition Facility (NIF) has successfully sparked a fusion reaction that released more energy than went into it. Even though there’s still a long way to go toward fusion as a clean energy source, this step can be considered as a major step forward.

READ MORE ABOUT THIS BREAKTHROUGH IN THIS FUSION TECHNOLOGY MARATHON

ChatGPT changes the way you experience artificial intelligence

ChatGPT, also known as OpenAI’s GPT-3 Chatbot API, is a natural language processing (NLP) tool developed by OpenAI. It is based on the GPT-3 model, which is a large, advanced AI language model that is capable of generating human-like text.

Overall, ChatGPT is changing the way we experience and interact with AI by making it easier to build and deploy chatbot applications that can understand and respond to user input in a natural, human-like way.

ChatGPT can be used to build chatbots and other NLP applications that can understand and respond to user input in a natural, human-like way. It is designed to be easy to use and integrate into existing systems, allowing developers to quickly build and deploy chatbot applications without the need for extensive training data.

One advantage of ChatGPT is its ability to understand and respond to a wide range of inputs and topics. It is trained on a large dataset of text and has the ability to generate coherent and contextually appropriate responses to a variety of inputs. This can make it a useful tool for building chatbots and other NLP applications that need to handle a wide range of queries and topics.

(Text has been created by ChatGPT)

CHALLENGE ChatGPT YOURSELF AND BE AMAZED. FIND OUT MORE HERE

New compliant pathways for privacy and security in the blockchain-based financial ecosystem

Innovation in blockchain privacy can bring a number of advantages to the financial ecosystem, particularly in terms of increasing the security and confidentiality of transactions. By combining this innovation with a 100% collateralized stablecoin, it is possible to create a more secure and stable digital currency that can be used for a wide range of financial transactions.

One advantage of using a 100% collateralized coin is that it is pegged to a specific asset, such as a fiat currency or commodity, which helps to stabilize its value and reduce price volatility. This can make it more attractive to users, as it reduces the risk of loss due to price fluctuations. The German Digital Cash GmbH just announced to have issued the first 100% compliant, central-bank-money-backed, Made in Germany, Euro-coin on UniSwap, called Digital Cash Euro (DCEUR). READ MORE ON THE DCEUR HERE

In terms of privacy, a blockchain-based stablecoin that incorporates innovative privacy features can help to protect the confidentiality of transactions by making it more difficult for outsiders to track and monitor them. This can be particularly useful for financial institutions and individuals.

Researchers from German crypto blockchain-based payments fintech etonec and other organizations have proposed using zero-knowledge proofs to ensure regulatory compliance and privacy in stablecoins. They have created a design that allows fiat-based stablecoins to be used like cash, within limits.

Dr. Jonas Gross, states on December 15, 2022 to CoinTelegraph: “How can privacy for digital payments be preserved, while ensuring stability and regulatory compliance? In this feasibility study co-authored by @etonec_gmbh, @MinaFoundation, @Privatbank1796, and @SnT_uni_lu we show how it can be done.“ FIND THE THE FULL STUDY HERE

Overall, the combination of a 100% collateralized stablecoin with innovative privacy features can bring a number of benefits to the financial ecosystem, including increased security, stability, and confidentiality.

Conclusion

Overall, technological progress has the potential to help address many of the challenges facing the world today, and it will likely continue to play a crucial role in finding solutions to these problems in the future.

December 2022 seems to be a good month in this respect. A month that shall give hope.

Innovation & Business Press & Publications Society & Diplomacy

Experts Exchange to develop prosperity, freedom, social participation and sustainability: The Federal Government Digital Summit 2022

Jochen Werne December 9, 2022

It was a great pleasure to meet again personally and be connected virtually with friends like Dr. Andreas Heindl and Dr. Johannes Winter who, like many others inside and outside this Digital Summit, dedicate their passion to the digitisation of Germany day after day. Their passion is the engine for Germany’s competitiveness and prosperity. Exchanges like today between Germany’s leading experts in the field of digitalisation and the German government are crucial for the country’s future innovation.

This was underlined today by Federal Chancellor Olaf Scholz and the ministers Robert Habeck, Volker Wissing, Nancy Faeser and Bettina Stark-Watzinger. A special motivation was given by Estonian Prime Minister Kaja Kallas and Japan’s Digital Minister Tarō Konō.

Congratulations to the organization committee and thank you for the kind invitation. Details can be found HERE

Digital Summit 2022

Germany’s digitisation continues to remain one of the main topics of the German government. The aim is to accelerate and promote digitisation processes and to exploit their potential to develop prosperity, freedom, social participation, and sustainability.

In this context, the Digital Summit remains the central platform for shaping the digital transformation with all parties involved. It focuses on the key fields of action within the digital transformation across ten topic-based platforms. The platforms and their focus groups are made up of representatives from business, academia and society who, between summit meetings, work together to develop projects, events and initiatives designed to drive digitisation in business and society forward. The Summit will serve to present the results of the work that has been done in the past, to highlight new trends and discuss digital challenges and policy approaches.

This year’s Digital Summit of the Federal Government will be held on 8 and 9 December 2022. The Federal Ministry for Digital and Transport and the Federal Ministry for Economic Affairs and Climate Action will jointly coordinate the summit’s preparation in the future. In the new legislature, new formats, concrete results and international impulses are to make it the driving force and showcase for digitisation in Germany and beyond.