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thedrcenter.org

2023 Canadian Emerging Tech & Policy Summit

University of Toronto

November 14th 2023

creativedestructionlab.com

web3canada.ca

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Welcome & Introduction

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Connor Spelliscy

Executive Director

Decentralization Research Center

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Morva Rohani

Executive Director

Canadian Web3 Council

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Intro to Creative Destruction Lab

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Sonia Sennik

Executive Director Creative Destruction Lab

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Creative Destruction Lab

An Introduction

Sonia Sennik

Executive Director

#BUILDSOMETHINGMASSIVE

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Sonia Sennik

  • Executive Director, Creative Destruction Lab
  • Executive Director, CDL Rapid Screening Consortium
  • Canada’s Top 40 Under 40
  • Founder, Sonia Sennik Resilience Fund

#BUILDSOMETHINGMASSIVE

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Creative Destruction Lab’s mission�is to enhance the commercialization of science for the betterment of humankind.

#BUILDSOMETHINGMASSIVE

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It is not the lack of ideas nor capital or effort that prevent early stage ventures in translating regional excellence in innovation into entrepreneurial success.

WHY IS IT HARDER TO BUILD STARTUPS OUTSIDE OF SILICON VALLEY?

#BUILDSOMETHINGMASSIVE

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Instead, the primary reason�is a failure in the market for�high quality judgment.

WHY IS IT HARDER TO BUILD STARTUPS OUTSIDE OF SILICON VALLEY?

#BUILDSOMETHINGMASSIVE

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Introducing the Creative Destruction Lab

PROGRAM STRUCTURE

Creative Destruction Lab (CDL) is 5-days of business mentorship and strategic objective setting, one day every 8-weeks spread out across 9-months from October until June.

Mentorship from entrepreneurs and investors

Organic investment opportunities

Technology advice from

CDL’s Scientists

Business development support from top students

#BUILDSOMETHINGMASSIVE

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Brian Mosoff

CEO of Ether Capital; Blockchain and cryptocurrency expert

Sharon O’Sullivan

Global Head of Technology Research & Innovation, Enterprise Architecture & Innovation at BMO

Scott Stornetta

Chief Scientist & Partner at Yugen Partners; Co-inventor of the blockchain

Ethan Buchman

CEO @ Informal Systems; Former Co-founder and CTO at Tendermint

THE CDL NETWORK: MENTORS

Mentors are exited entrepreneurs, successful operators, angel investors, and VC partners

CDL-Montreal Blockchain/Web3 Mentors

#BUILDSOMETHINGMASSIVE

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SCOPE & REACH

CDL operates five sites in Canada; three in the�United States; four in Europe; and one in Australia

TORONTO

● AI

● Advanced Therapies

● Cancer

● Matter

● Neuro

● Quantum

● Space

SEATTLE

● Computational Health

● Manufacturing

ROCKIES

● Prime

● Ag

● Energy

MONTREAL

● AI

● Supply Chain

● Blockchain & Web3

ESTONIA

● Digital Society

ATLANTIC

● Prime

● Oceans

WISCONSIN

● Advanced Therapies

● Risk

● Health & Wellness

ATLANTA

● FinTech

● Space

VANCOUVER

● Advanced Therapies

● Biomedical Engineering

● Cancer

● Climate

● Compute

● Minerals

BERLIN

● Health

PARIS

● AI

● Climate

● Space

OXFORD

● Advanced Therapies

● AI

● Climate

● FinTech

● Space

MELBOURNE

● Prime

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CDL-Montreal

CDL-Toronto

CDL-Vancouver

CDL-Oxford

CDL-Rockies

CDL-Atlantic

CDL-Atlanta

CDL-Wisconsin

CDL-Paris

CDL-Seattle

CDL-Estonia

CDL-Berlin

CDL-Melbourne

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Successful commercialization of cutting-edge science achieved through�the program

Equity Value Creation

$28B

Sites Focused on�Global Impact

13

● Advanced Therapies

● Agriculture

● Artificial Intelligence

● Biomedical Engineering

● Blockchain & Web3

● Cancer

● Climate

● Compute

● Computational Health

● Digital Society

● Energy

● FinTech

● Health

● Health & Wellness

● Manufacturing

● Matter

● Minerals

● Oceans

● Prime

● Quantum

● Risk

● Supply Chain

● Space

CDL operates thirteen sites, each tied to�a top tier research institution and business school

CREATIVE DESTRUCTION LAB

Increase Probability of Success

Streams

Participating Founders & Alumni Companies

6,000+

More than 6,000 founders representing over 2,300 companies have participated in the CDL program

#BUILDSOMETHINGMASSIVE

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Prime

AI

Quantum

Health

Space

Blockchain

Energy

Supply Chain

Oceans

Recovery

Commerce

Climate

Risk

Ag

Matter

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Oxford

CDL-Atlanta

CDL-Paris

CDL-Wisconsin

Prime

AI

Quantum

Health

Space

Blockchain

Energy

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Oxford

CDL-Atlanta

CDL-Paris

CDL-Wisconsin

CDL-Seattle

SCALING AND SPECIALIZATION

CDL’s growth from 2012 to 2023

STREAM LAUNCHES

SITE LAUNCHES

CDL-Toronto

Prime

CDL-Toronto

CDL-Vancouver

Prime

AI

Prime

AI

Quantum

Health

CDL-Toronto

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Oxford

Prime

AI

Quantum

Health

Space

Blockchain

Energy

Supply Chain

Prime

AI

2012

2015

2016

2017

2018

2019

2020

2021

Prime

AI

Quantum

Health

Space

Blockchain

Energy

Supply Chain

Oceans

Commerce

Climate

Risk

Ag

Matter

FinTech

Neuro

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Oxford

CDL-Atlanta

CDL-Paris

CDL-Wisconsin

CDL-Seattle

CDL-Estonia

CDL-Berlin

Prime

AI

Quantum

Health

Space

Blockchain

Energy

Supply Chain

Oceans

Commerce

Climate

Risk

Ag

Matter

FinTech

Neuro

Cancer

Biomedical Engineering

Compute

Digital Society

Web3

Advanced Therapies

2022

2023

Prime

AI

Quantum

Health

Space

Blockchain/Web3

Energy

Supply Chain

Oceans

Climate

Risk

Ag

Matter

FinTech

Neuro

Cancer

Biomedical Engineering

Compute

Digital Society

Advanced Therapies

Minerals

CDL-Toronto

CDL-Vancouver

CDL-Rockies

CDL-Montreal

CDL-Atlantic

CDL-Oxford

CDL-Atlanta

CDL-Paris

CDL-Wisconsin

CDL-Seattle

CDL-Estonia

CDL-Berlin

CDL-Melbourne

  • CDL Blockchain launched in CDL-Toronto in 2018/19
  • CDL Web3 launched in CDL-Montreal in 2022/23
  • CDL Blockchain/Web3 merged under leadership of CDL-Montreal in 2023/24

#BUILDSOMETHINGMASSIVE

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CDL-Montreal Blockchain/

Web3

Stream

20 Ventures from the 54 interviewed were selected to participate in the 2023/24 Blockchain/Web3 Cohort.

BLOCKCHAIN/WEB3 ALUMNI

79

Since 2018, 194 Ventures have been admitted to the Blockchain/Web3 stream at CDL, of which 79 graduated.

CDL-Montreal received 132 applications for the 2023/24 Blockchain/Web3 cohort. 54 were selected for interviews.

VENTURES ADMITTED

20

APPLICATIONS RECEIVED

132

Key Industries

IDENTITY & VERIFICATION APPLICATIONS

DECENTRALIZED SOCIAL NETWORKS

DECENTRALIZED MARKETPLACES

DATA STORAGE & TRANSMISSION SYSTEMS

METAVERSE

DECENTRALIZED GAMES & ENTERTAINMENT

DECENTRALIZED INFRASTRUCTURE

DeFi

DAOs

NFTs

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The Value of CDL

THE CDL PROGRAM

  • Organic investment opportunities with VC’s and angels.
  • Triage top-priority business objectives
  • Crowd-source credible feedback on business strategy (e.g., go-to-market strategy, financing strategy, etc.,)

#BUILDSOMETHINGMASSIVE

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THE CDL NETWORK: ALUMNI

Successful commercialization of cutting-edge�science and technology

#BUILDSOMETHINGMASSIVE

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THE CDL NETWORK: INVESTORS

CDL enables investment from �leading VC firms to venture

#BUILDSOMETHINGMASSIVE

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We create the lowest barriers of entry possible for the highest performing scientists, inventors, and entrepreneurs from around the world.

IN CLOSING

#BUILDSOMETHINGMASSIVE

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Thank you!

Sonia Sennik

Executive Director

Creative Destruction Lab

sonia@creativedestructionlab.com

#BUILDSOMETHINGMASSIVE

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Introduction to Tablemates

�What is the most common challenge you’ve experience working in emerging tech in Canada?

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Senator Colin Deacon

Canadian Senate

Nova Scotia

Panel: On the State of Regulation of Blockchain & AI

MODERATOR

MP Ben Lobb

Member of Parliament, Huron-Bruce;

Shadow Minister for Digital Government

MORVA ROHANI

thedrcenter.org

creativedestructionlab.com

web3canada.ca

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Lightning Talks

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Shrey Jain

Founder, RxC, Plural Technology Collaboratory, Plurality Institute

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Contextual Confidence

Shrey Jain

Microsoft Research

Zoë Hitzig

Harvard

Pamela Mishkin

OpenAI

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identify

context

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identify

context

protect

context

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identify

context

protect

context

authenticity?

privacy?

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identify

context

protect

context

contextual confidence

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identify

context

protect

context

contextual confidence

DATA PROTECTION

FRAUD

PERSUASION

TRUTH

DEEPFAKES

DECEPTION

TRUSTWORTHINESS

PERSONHOOD

MISINFORMATION

DISINFORMATION

PRIVACY

SOCIAL ENGINEERING

SCAMS

FAIR USE

COPYRIGHT

DATA LEAKAGE

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identify

context

protect

context

contextual confidence

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context

who

when

where

why

how

definition: in settings with high contextual confidence

participants in an exchange have the tools to:

  1. identify the context in which communication takes place
  2. protect communication from recombination outside that context

context

who

when

where

why

how

as a result,

there is a low probability that a contextual integrity norm will be violated

contextual confidence

is a framework that helps us understand how generative AI challenges meaningful and effective communication

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contextual confidence

is a framework that helps us understand how generative AI challenges meaningful and effective communication

definition: in settings with high contextual confidence

participants in an exchange have the tools to:

  1. identify the context in which communication takes place
  2. protect communication from recombination outside that context

as a result,

there is a low probability that a contextual integrity norm will be violated

(1)

guide development and prioritization

of existing strategies

(2)

see new (combinations of) strategies

goals

understand challenges

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

(1)

guide development and prioritization

of existing strategies

(2)

see new (combinations of) strategies

goals

understand challenges

scenario

privacy perspective?

    • tools: data loss prevention, de-identification, etc.
    • risks stripping away what is most useful

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

(1)

guide development and prioritization

of existing strategies

(2)

see new (combinations of) strategies

goals

understand challenges

scenario

information integrity perspective?

    • tools: “fact-checking,” frequent reviews of outputs, etc.
    • risks overburdening tool with costly reviews

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

contextual confidence perspective

    • tools: usage policies, UI design, deniable messages
    • mitigates risks without sacrificing too much usefulness

(1)

guide development and prioritization

of existing strategies

(2)

see new (combinations of) strategies

goals

understand challenges

scenario

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outline

  1. framework: contextual confidence
  2. challenges: to identification and protection
  3. strategies: for containment and mobilization
  4. next steps: tool development and usability

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outline

  1. framework: contextual confidence
  2. challenges: to identification and protection
  3. strategies: for containment and mobilization
  4. next steps: tool development and usability

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identify

protect

challenges

impersonation and imitation

self

social or cultural groups

other people

AI models

astroturfing

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challenges

reuse and recombination

pace

targeted dissemination

attribution

consent

scale

identify

protect

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outline

  1. framework: contextual confidence
  2. challenges: to identification and protection
  3. strategies: for containment and mobilization
  4. next steps: tool development and usability

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strategies

containment

reactive

reassert context where it is currently threatened

reverse existing expectations

mobilize

proactive

assert context where not yet threatened

set higher expectations

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strategies

contain

mobilize

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strategies

identify

protect

contain

mobilize

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strategies

identify

protect

contain

mobilize

content provenance

digital identity protocols

relational passwords

model verification

usage & content policies

deniable messages

prompt protection

data cooperatives

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

scenario

identify

protect

contain

mobilize

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

scenario

identify

protect

contain

mobilize

  1. usage policy requiring employees to pass tests to engage with CEO model

  • verification proofs of CEO model and employee identity

  • interface design that discloses model interaction

  • designated verified signatures for off-the-record conversations

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

scenario

identify

protect

contain

mobilize

  1. usage policy requiring employees to pass tests to engage with CEO model

  • verification proofs of CEO model and employee identity

  • interface design that discloses model interaction

  • designated verified signatures for off-the-record conversations

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

scenario

identify

protect

contain

mobilize

  1. usage policy requiring employees to pass tests to engage with CEO model

  • verification proofs of CEO model and employee identity

  • interface design that discloses model interaction

  • designated verified signatures for off-the-record conversations

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a firm’s CEO creates a mimetic model

    • to field employee concerns
    • to attend meetings as a “proxy” CEO
    • to gather information and advise

scenario

identify

protect

contain

mobilize

  1. usage policy requiring employees to pass tests to engage with CEO model

  • verification proofs of CEO model and employee identity

  • interface design that discloses model interaction

  • designated verified signatures for off-the-record conversations

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outline

  1. framework: contextual confidence
  2. challenges: to identification and protection
  3. strategies: for containment and mobilization
  4. next steps: tool development and usability

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next steps

tool development

usability studies

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identify

context

protect

context

Contextual Confidence and Generative AI

Shrey Jain

Microsoft Research

Zoë Hitzig

Harvard

Pamela Mishkin

OpenAI

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Samir Chhabra

Director General of Marketplace Framework Policy, Innovation, Science and Economic Development Canada

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BREAK

Please return to your seat by 10:45am

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Stephanie Duhaime

Director, Program and Policy Innovation Financial Consumer Agency of Canada

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Financial Consumer Agency of Canada

Unclassified / Non classifié

Supporting financial inclusion via digital innovation

Stephanie Duhaime Director, Program and Policy Innovation Research, Policy, and Education Branch Financial Consumer Agency of Canada

November 2023

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The Financial Consumer Agency of Canada

Unclassified / Non classifié

Supervise federally-regulated financial entities including banks, credit unions, external complaints bodies, insurance companies, and payment card network operators (Interac and credit card companies).

Educate financial consumers in Canada and strengthen their financial literacy and financial resilience.

The Financial Consumer Agency of Canada (FCAC) is responsible for protecting the rights and interests of consumers of financial products and services. To that end, we:

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Unclassified / Non classi

fié

We Protect.

3

We Educate.

We Innovate.

We Collaborate.

Research, Policy, and Education (RPE) Branch

Supporting financial inclusion through thought leadership and innovation in financial consumer protection

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National Financial Literacy Strategy 2021-2026

Unclassified / Non classifié

4

Make Change that Counts

A 5-year plan to create a more accessible, inclusive, and effective financial literacy ecosystem for all Canadians.

Vision

A Canada where everyone can build financial resilience in an increasingly digital world.

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National Strategy Measurement Plan

Protected B / Protégé B

5

To make change that counts, we need to measure our collective impact.

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RPE: Policy and Consumer Research

Protected B / Protégé B

6

Enhanced focus collection of datasets for consumer protection and evidence-based policy development

Timely research to assess consumer financial capabilities, challenges, and trends for targeted experiments, interventions, and policy and program development

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Building Our Evidence Base

9

Protected B / Protégé B

Data source: Open Banking Awareness Survey, May–June 2022

Confidential

Awareness and Understanding of Open Banking to inform policy.

  • Data shows that:
    • Awareness and understanding of open banking is low.
    • Canadians do not understand how protection varies across financial service providers.
  • Consumer trust is key for open banking to succeed in Canada.
  • Findings inform FCAC’s work with the Department of Finance on a future consumer protection policy framework.

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Mobilizing around Evidence

Protected B / Protégé B

Digitalization of financial products and services

Context and research findings:

  • Consumers continue their shift toward digital financial offerings
  • Ever-growing range of products and services, self-directed investing and in trading of cryptocurrency, etc.

Our activities:

  • Policy options development to enhance federal consumer protections on value-based asset currency (i.e. stablecoins) .
  • Policy advice to Department of Finance on consumer protection and financial inclusion principles to include in a future Open Banking framework
  • 2/3 of mortgage-holders are having trouble meeting

their financial commitments.

  • 48% of households report increasing debt.
  • More Canadians are borrowing money.
  • More Canadians are using payday loans.

Our activities:

  • Support to FCAC's Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances
  • Work with financial institutions to enhance low-cost and no-cost bank account options, as part of the Minister of Finance announcements on measures to make banking more affordable for Canadians
  • Budget 2023 Criminal Rate of Interest commitment, ongoing support to Department of Finance, Fall consultations.
  • Analysing data on payday loans from the monthly financial well- being monitor and our 2022-23 high-cost credit survey.

Context and research findings:

  • New regulatory expectations around

addressing consumer risk

  • Canada: Move to a single external complaints body (ECB)
  • In Budget 2023, the Government committed to strengthening Canada’s external complaints handling system for banks.

Our activities:

Financial resilience in challenging economic times

Context and research findings:

Consumer protection

and trust

  • In October, the Minister of Finance designated the Ombudsman for Banking Services and Investments (OBSI) as Canada's sole external complaints body for banking, following FCAC's application call and recommendation.

10

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Planned Publications

Refund to Savings Canada Pilot Evaluation

National Strategy Results Dashboard

Payday loan comparison 2016-2022

Results from Public Opinion Research on Canadians' use of Stablecoin Report on line of credit and instalment use

Protected B / Protégé B

11

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Eric Richmond

President, Coinsquare; Co-founder & Director, Tetra Trust Company

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How is Canada doing in regulating Crypto Trading Platforms?

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

November 2023 - Canadian Emerging Tech & Policy Summit - Lightning Talk

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Introduction to Cryptocurrency in Canada

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

Canada's crypto landscape has seen remarkable growth, both in adoption and regulation. 

WonderFi, as a leading entity, has been at the forefront, guiding users through this evolving ecosystem.

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Current Crypto Market in Canada

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

Canada has experienced a surge in cryptocurrency adoption in recent years.

13%�of Canadians own crypto

    51%of Canadians know about crypto assets

    $1B+

Monthly trading volume on exchanges in Canada

(based on internal estimates)

Source: Ontario Securities Commission, Research Study: Crypto Assets 2022. October 19, 2022.

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Current Crypto Market in Canada

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

31%

of Canadian plan to purchase Cryptocurrency or crypto funds in the next 12 months

49%

of Canadian crypto owners use an exchange or trading platform to store their crypto

Source: Ontario Securities Commision, Research Study: Crypto Assets 2022. October 19, 2022.

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Crypto Trading Platforms Servicing the Canadian Market

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

The Canadian crypto space has evolved rapidly

  • The Rise of International Exchanges: They initially thrived, offering diverse services unchecked by domestic regulatory constraints.
  • Regulation Tightens: As Canadian rules solidified, these platforms faced a dilemma - adapt or exit.
  • Domestic Platform Journey: Domestic platforms, in contrast, have been on a path towards full regulation, striving to balance compliance with innovation.

WonderFi stands at this intersection, aiming to offer �Canadians innovative services in a compliant ecosystem.

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Regulatory Landscape in Canada for CTPs

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

Regulatory stages: Early skepticism, cautious observation, to collaborative shaping of a framework.

  • Pros of regulation: Enhancing investor protection, fostering responsible innovation, and establishing Canada on the global crypto stage.
  • Balancing Act: Nurturing growth while ensuring investor safety.

Significant Regulatory Bodies & Their Stances:

  • CIRO: Advocates for balanced regulations to foster innovation while ensuring investor protection.
  • OSC: Emphasizes the need for crypto platforms to be registered and adhere to standard financial market rules.

Regulation ensures user protection and market integrity.

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Today’s Regulatory Landscape

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

1. Regulated Firms Operating in Canada:

The evolving Canadian regulatory framework is steering crypto platforms towards heightened compliance.

  • CIRO Dealer: As the first crypto-native platform to achieve CIRO membership, Coinsquare leads the industry in regulatory alignment and user protection.
  • Restricted Dealers: A significant portion of Canadian platforms currently operate under this designation, adhering to a more confined set of operations.
  • Pre-Registration Undertaking: This is a commitment by unregistered Crypto Asset Trading Platforms in Canada to comply with investor protection provisions while their application is being reviewed, aligning with the standards for registered platforms. 

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Today’s Regulatory Landscape

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

2. International Firms:

  • Many international platforms have faced regulatory challenges in Canada, leading to a shift in their service offerings.
  • Regulatory Pushback: Several global exchanges have reduced their offerings or left the Canadian market due to regulatory actions.
  • Limited Offerings: Those that remain have often restricted the products they extend to Canadian users.

3. Decentralized Platforms:

  • Operating predominantly outside the existing regulatory frameworks, these platforms promise decentralization at the cost of regulatory clarity.
  • Operational Freedom: They offer services without central governance, often leading to innovative solutions.
  • Regulatory Challenge: Their nature poses unique challenges for regulators, and users should approach with an understanding of associated risks.

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How is Canada doing in Regulating Crypto Trading Platforms?

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

1. Regulatory Clarity

The rules of engagement to operate a CTP in Canada are clear, however, regulators need to continue to be flexible in their approach in the application of securities rules. Time limits should be placed on CTPs to get through the “regulatory funnel” to not create regulatory arbitrage

2. Are the securities commissions supposed to regulate?

The securities commissions might not necessarily be the appropriate government bodies to regulate all things crypto. Federal and provincial governments should look to create laws that are tailored to this asset class.

3. Other areas of Crypto: Decentralized Finance, Stablecoins, NFTs, etc.

There can be unintended consequences of rule making. Regulating certains areas of crypto may just force the activity to move off-shore and to unregulated venues. Is that really our intention?

4. Global Technology in a Small Market

Crypto is global. Canada makes up 2% of the global GDP. Our rules (at times) need to be in lockstep with other large jurisdictions or we could stifle the asset class in Canada

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THANK YOU

WonderFi owns, operates, and incubates �across the global digital asset ecosystem.

TSX:WNDR | OTCQB:WONDF | WKN:A3C166

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Iliana Oris Valiente

Managing Director & Innovation Lead, Accenture Canada

The View from the Large Corporate Boardrooms

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Ethan Buchman

CEO, Informal Systems; Co-founder, Cosmos Network

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Mukul Ahuja

Financial Services Industry Leader, Omnia AI (Deloitte)

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Stephanie Duhaime

Director, Program and Policy Innovation Financial Consumer Agency of Canada

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Financial Consumer Agency of Canada

Unclassified / Non classifié

Supporting financial inclusion via digital innovation

Stephanie Duhaime Director, Program and Policy Innovation Research, Policy, and Education Branch Financial Consumer Agency of Canada

November 2023

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The Financial Consumer Agency of Canada

Unclassified / Non classifié

Supervise federally-regulated financial entities including banks, credit unions, external complaints bodies, insurance companies, and payment card network operators (Interac and credit card companies).

Educate financial consumers in Canada and strengthen their financial literacy and financial resilience.

The Financial Consumer Agency of Canada (FCAC) is responsible for protecting the rights and interests of consumers of financial products and services. To that end, we:

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Unclassified / Non classi

fié

We Protect.

3

We Educate.

We Innovate.

We Collaborate.

Research, Policy, and Education (RPE) Branch

Supporting financial inclusion through thought leadership and innovation in financial consumer protection

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National Financial Literacy Strategy 2021-2026

Unclassified / Non classifié

4

Make Change that Counts

A 5-year plan to create a more accessible, inclusive, and effective financial literacy ecosystem for all Canadians.

Vision

A Canada where everyone can build financial resilience in an increasingly digital world.

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National Strategy Measurement Plan

Protected B / Protégé B

5

To make change that counts, we need to measure our collective impact.

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RPE: Policy and Consumer Research

Protected B / Protégé B

6

Enhanced focus collection of datasets for consumer protection and evidence-based policy development

Timely research to assess consumer financial capabilities, challenges, and trends for targeted experiments, interventions, and policy and program development

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Building Our Evidence Base

9

Protected B / Protégé B

Data source: Open Banking Awareness Survey, May–June 2022

Confidential

Awareness and Understanding of Open Banking to inform policy.

  • Data shows that:
    • Awareness and understanding of open banking is low.
    • Canadians do not understand how protection varies across financial service providers.
  • Consumer trust is key for open banking to succeed in Canada.
  • Findings inform FCAC’s work with the Department of Finance on a future consumer protection policy framework.

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Mobilizing around Evidence

Protected B / Protégé B

Digitalization of financial products and services

Context and research findings:

  • Consumers continue their shift toward digital financial offerings
  • Ever-growing range of products and services, self-directed investing and in trading of cryptocurrency, etc.

Our activities:

  • Policy options development to enhance federal consumer protections on value-based asset currency (i.e. stablecoins) .
  • Policy advice to Department of Finance on consumer protection and financial inclusion principles to include in a future Open Banking framework
  • 2/3 of mortgage-holders are having trouble meeting

their financial commitments.

  • 48% of households report increasing debt.
  • More Canadians are borrowing money.
  • More Canadians are using payday loans.

Our activities:

  • Support to FCAC's Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances
  • Work with financial institutions to enhance low-cost and no-cost bank account options, as part of the Minister of Finance announcements on measures to make banking more affordable for Canadians
  • Budget 2023 Criminal Rate of Interest commitment, ongoing support to Department of Finance, Fall consultations.
  • Analysing data on payday loans from the monthly financial well- being monitor and our 2022-23 high-cost credit survey.

Context and research findings:

  • New regulatory expectations around

addressing consumer risk

  • Canada: Move to a single external complaints body (ECB)
  • In Budget 2023, the Government committed to strengthening Canada’s external complaints handling system for banks.

Our activities:

Financial resilience in challenging economic times

Context and research findings:

Consumer protection

and trust

  • In October, the Minister of Finance designated the Ombudsman for Banking Services and Investments (OBSI) as Canada's sole external complaints body for banking, following FCAC's application call and recommendation.

10

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Planned Publications

Refund to Savings Canada Pilot Evaluation

National Strategy Results Dashboard

Payday loan comparison 2016-2022

Results from Public Opinion Research on Canadians' use of Stablecoin Report on line of credit and instalment use

Protected B / Protégé B

11

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LUNCH

Please reconvene at 12:40pm.

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Table 1

Table 2

Table 3

Table 4

Table 5

Table 6

Table 7

Table 8

Daniel Warelis

Ben Lobb

Jacob Robinson

Eric Richmond

Skaidra Puodziunas

John Le Blanc

Bhutila Karpoche

Jordan Solway

Denis Gregoire

Valentina Taachi

Jeff Kehoe

Pascale Toupin

Nick Chen

Sharon O'Sullivan

Mathew Szeto

Brian Mosoff

Colin Deacon

Peter Kieltyka

Marco Ciarlariello

Jake Harwood

Ilana Singer

Stephanie Tjon

Morva Rohani

Stephanie Duhaime

Michael Geist

Owen Gaffney

Stacie Korjenevitch

Jonathan Ip

Randall Baran-Chong

Scott Stornetta

Lori Stein

Samir Chhabra

Mark Doble

Mano Kulasingam

Amadea Camozzi

Addison Cameron-Huff

Alex Husarewych

Evan Weiss

Khaled Verjee

Richard Clark

Table 9

Table 10

Table 11

Table 12

Table 13

Table 14

Table 15

Abu Kamat

Evan Thomas

James Rooney

Sanjay Zimmerman

Preet Singh

Winnie Santoyo

Shrey Jain

Jelena Djuric

Matt Singh

Merici Young

Yanny Young

David Smith

Ethan Buchman

Connor Spelliscy

Jillian Friedman

Brandon Zhao

Stefan Coolican

Iliana Oris Valiente

George Bordianu

Tanim Rasul

Carrie Barr

Suzanne Lasrado

Mathieu Baril

Anne Ramsay

Jeffery Sun

Marc Lijour

Shir Barzilay

Mariama Dupuis

Gurkamal Dhahan

Kent Williamson

Ben Harrison

Afternoon Seating Chart

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Welcome Back

What is the most positive experience you’ve had working in emerging tech in Canada?

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Suzanne Lasrado

Vice President of Member Services & Innovation

CIRO

Panel: Industry and Regulators Working Together on Blockchain

MODERATOR

Winnie Sanjoto

Director of Corporate Finance

OSC

Pascal Toupin

Director of Oversight of Intermediaries AMF

Jordan Solway

Executive Vice President of Legal & Enforcement

FSRA

EVAN THOMAS

Head of Legal, Wealthsimple Crypto

thedrcenter.org

creativedestructionlab.com

web3canada.ca

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Lightning Talks

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Stephanie Duhaime

Director, Program and Policy Innovation Financial Consumer Agency of Canada

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Financial Consumer Agency of Canada

Unclassified / Non classifié

Supporting financial inclusion via digital innovation

Stephanie Duhaime Director, Program and Policy Innovation Research, Policy, and Education Branch Financial Consumer Agency of Canada

November 2023

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The Financial Consumer Agency of Canada

Unclassified / Non classifié

Supervise federally-regulated financial entities including banks, credit unions, external complaints bodies, insurance companies, and payment card network operators (Interac and credit card companies).

Educate financial consumers in Canada and strengthen their financial literacy and financial resilience.

The Financial Consumer Agency of Canada (FCAC) is responsible for protecting the rights and interests of consumers of financial products and services. To that end, we:

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Unclassified / Non classi

fié

We Protect.

3

We Educate.

We Innovate.

We Collaborate.

Research, Policy, and Education (RPE) Branch

Supporting financial inclusion through thought leadership and innovation in financial consumer protection

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National Financial Literacy Strategy 2021-2026

Unclassified / Non classifié

4

Make Change that Counts

A 5-year plan to create a more accessible, inclusive, and effective financial literacy ecosystem for all Canadians.

Vision

A Canada where everyone can build financial resilience in an increasingly digital world.

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National Strategy Measurement Plan

Protected B / Protégé B

5

To make change that counts, we need to measure our collective impact.

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RPE: Policy and Consumer Research

Protected B / Protégé B

6

Enhanced focus collection of datasets for consumer protection and evidence-based policy development

Timely research to assess consumer financial capabilities, challenges, and trends for targeted experiments, interventions, and policy and program development

112 of 151

Building Our Evidence Base

9

Protected B / Protégé B

Data source: Open Banking Awareness Survey, May–June 2022

Confidential

Awareness and Understanding of Open Banking to inform policy.

  • Data shows that:
    • Awareness and understanding of open banking is low.
    • Canadians do not understand how protection varies across financial service providers.
  • Consumer trust is key for open banking to succeed in Canada.
  • Findings inform FCAC’s work with the Department of Finance on a future consumer protection policy framework.

113 of 151

Mobilizing around Evidence

Protected B / Protégé B

Digitalization of financial products and services

Context and research findings:

  • Consumers continue their shift toward digital financial offerings
  • Ever-growing range of products and services, self-directed investing and in trading of cryptocurrency, etc.

Our activities:

  • Policy options development to enhance federal consumer protections on value-based asset currency (i.e. stablecoins) .
  • Policy advice to Department of Finance on consumer protection and financial inclusion principles to include in a future Open Banking framework
  • 2/3 of mortgage-holders are having trouble meeting

their financial commitments.

  • 48% of households report increasing debt.
  • More Canadians are borrowing money.
  • More Canadians are using payday loans.

Our activities:

  • Support to FCAC's Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances
  • Work with financial institutions to enhance low-cost and no-cost bank account options, as part of the Minister of Finance announcements on measures to make banking more affordable for Canadians
  • Budget 2023 Criminal Rate of Interest commitment, ongoing support to Department of Finance, Fall consultations.
  • Analysing data on payday loans from the monthly financial well- being monitor and our 2022-23 high-cost credit survey.

Context and research findings:

  • New regulatory expectations around

addressing consumer risk

  • Canada: Move to a single external complaints body (ECB)
  • In Budget 2023, the Government committed to strengthening Canada’s external complaints handling system for banks.

Our activities:

Financial resilience in challenging economic times

Context and research findings:

Consumer protection

and trust

  • In October, the Minister of Finance designated the Ombudsman for Banking Services and Investments (OBSI) as Canada's sole external complaints body for banking, following FCAC's application call and recommendation.

10

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Planned Publications

Refund to Savings Canada Pilot Evaluation

National Strategy Results Dashboard

Payday loan comparison 2016-2022

Results from Public Opinion Research on Canadians' use of Stablecoin Report on line of credit and instalment use

Protected B / Protégé B

11

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Yanny Young

Manager of Innovation in Finance, Alberta Securities Commission

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Innovation in Finance�(InnoFin) at the ASC

Yanny Young, Manager, Innovation in Finance

Alberta Securities Commission

ALBERTA SECURITIES COMMISSION

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InnoFin as a start-up

ALBERTA SECURITIES COMMISSION

117

InnoFin Lab

    • How can novel technology and data be applied to foster a fair and efficient capital market while protecting investors?

InnoFin Hub

    • How can we further our dialogue with market participants?

Technology and Innovation Advisory Committee (TIAC)

    • How can we further knowledge exchange with experts?

National and International Fintech Committee and working groups

    • How can we work with peer regulators to further our service for innovators?

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Innovation is a community endeavour

ALBERTA SECURITIES COMMISSION

118

“If you look at history, innovation doesn’t come just from giving people incentives; �it comes from creating environments where their ideas can connect.”

Steven Johnson, American science author and media theorist

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TechSprint

ALBERTA SECURITIES COMMISSION

119

Global Financial Innovation Network (GFIN)

Greenwashing TechSprint, 2023

Financial Conduct Authority (FCA)

Authorised Push Payment Fraud TechSprint, 2022

CryptoSprint, 2021

Bank of International Settlement (G20)

Cross-border payments, 2023

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Innovate as a community

ALBERTA SECURITIES COMMISSION

120

Identify

Experiment

Learn

Shared objectives: innovation’s role in investor protection, burden reduction, fairness and efficiency, privacy, etc.

Through real-world simulation or sample test in a risk-contained manner.

Step-wise adaptation to new and emerging technology with agility.

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Questions?

ALBERTA SECURITIES COMMISSION

Yanny Young

yanny.young@asc.ca

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Thank you

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Ilana Singer

Senior Vice President of Legal & Policy; Corporate Secretary, Canadian Investor Protection Fund

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Investor Protection in Times of Disruption – Are We Ready?

Ilana Singer

SVP, Canadian Investor Protection Fund and Chair, OSC Investor Advisory Panel

2023 Canadian Emerging Tech & Policy Summit

124

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125

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Thank you.

Ilana Singer

Phone: 416 643-7120

Email: isinger@cipf.ca

Website: www.cipf.ca

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BREAK

Please be back in your seat by 2:35pm.

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Michael Geist

Professor of Law, University of Ottawa; Canada Research Chair in Internet and E-commerce Law

Digital Policy as an ATM

130 of 151

Skaidra Puodžiūnas

Senior Engagement Advisor

Ontario Digital Service

Abu Kamat

Manager of Policy Development

Council of Canadian Innovators

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Building an Innovation & Prosperity Strategy for Canada

Skaidra Puodziunas

Council of Canadian InnovatorsDirector, Government Affairs for Ontario spuodziunas@canadianinnovators.org

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Canada has a scale-up problem, not a start-up problem.

Innovation is the commercialization of an idea – an invention.

Canada does ‘invention’ well (i.e. scientific, university research) but does ‘innovation’ poorly (i.e. scaling, commercializing).

These are failures of public policy, not of a lack of drive or entrepreneurial spirit from Canadian innovators.

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Tech’s Lobbying Push Follows Market Consolidation, Study Shows

(Bloomberg – Aug. 25, 2021)

For far too long, public policy regarding job creation and commercialization in Canada has been dominated by non-practitioners, foreign multinationals and other actors whose primary purpose is not to create economic growth in our most strategic sectors.

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Since 2015, CCI has helped change the way Canadian governments develop economic policy by ensuring that Canadian innovators are engaged in all parts of the public policy development process.

Tech startups urge Ottawa not to raise taxes on stock options

(The Globe & Mail – Dec 30, 2015)

Liberals drop controversial stock options tax plan

(The Globe & Mail – March 22, 2016)

Canadian tech firms want shorter visa wait times for foreign talent

(The Globe & Mail – July 26, 2016)

Government unveils global skills strategy with fast-track visa process (Betakit – November 1, 2016)

Canada needs an innovative intellectual property strategy

(The Globe and Mail – May 19, 2017)

Federal government to announce ‘patent troll’ crackdown as part of national IP strategy

(The Globe and Mail – April 25, 2018)

Canadian CEOs and academics push Ottawa for national big-data strategy

(The Canadian Press – February 4, 2018)

Federal government to kick off talks about national strategy on big data (iPolitics– June 18, 2018)

CCI tells feds emergency wage subsidy must be expanded to support Canadian tech

(Betakit – April 2, 2020)

Ottawa unveils $1.2-billion in pandemic funding for startups, small business

(The Globe and Mail – April 17, 2020)

Ottawa adds $155-million to pandemic-support Innovation Assistance Program

(The Globe and Mail – November 6, 2020)

Tech companies calling on Alberta premier to intervene in battle over 'software engineer' title

(The Canadian Press – October 14, 2022)

Alberta moves to legalize use of 'software engineer' title, ending lengthy battle between regulators, tech firms

(The Globe and Mail – November 6, 2023)

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CCI is a network of CEOs committed to growing Canada’s innovation outputs

  • We are a national business association representing 150 of Canada’s fastest-growing ‘scaleup’ companies.
  • Our members are:
    • Market leaders in their verticals
    • Commercializing their technologies in over 190 countries
    • Generating at least $5M in annual recurring revenue
    • Proudly headquartered in Canada and focused on scaling-up globally.
  • We work closely with the CEOs and C-Suite leaders behind Canada’s most successful companies to develop national strategies that increase access to talent, capital and customers for homegrown firms.
  • CCI is chaired by Jim Balsillie (Retired BlackBerry Chairman & Co-CEO) and John Ruffolo (Founder, OMERS Ventures, Maverix Private Equity)
  • Learn more at www.canadianinnovators.org

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Shift from Tangibles to Intangibles

Components of S&P Market Value

  • Apple, Amazon, Alphabet, Facebook, Microsoft total value is ~$7.6 trillion, with total tangible book value ~4%
  • Alibaba and Tencent in China are valued at ~$1.3 trillion, with total tangible book value ~3%

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Economy of Traditional, Tangible Goods

Economy of Ideas, Intangible Goods

Ownership of physical property is a positive right

Owning (“generating”) intellectual property (IP) is a negative right

Production and sale of physical property to generate revenue

Amassing IP and restricting use to collect “rents”

The objective in industrial/services economy is to move inventory

The objective in the innovation economy is to acquire IP

Traditional goods can only be owned by one person at a time (“rivalrous”)

IP is globally and simultaneously accessible by unlimited number of people (“non-rivalrous”)

Traditional infrastructure needed to move goods across borders to individual customers

It is impossible to determine where IP originates and how it moves across borders

Supply chains feature multiple vendors competing with each other based on cost competitiveness

Value chains are based on winner-take-all economics

Competition rules prevent traditional production monopolies

IP is a government-created temporary monopoly

Trade liberalization increases competition and reduces prices

Stronger IP protections decrease competition and increase prices

Traditional trade agreements reduce the value of vested interests

“Asset enhancement agreements” raise the value of vested IP-based interests

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We’re in the era of intangibles.

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ISED, March 2021

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… What about AI?

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Read in full here.

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Thank you!

Skaidra Puodziunas

Council of Canadian InnovatorsDirector, Government Affairs for Ontario spuodziunas@canadianinnovators.org

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Mark Doble

Founder & CEO

Alexi

Panel: On Canadian Founders in AI & Blockchain

CONNOR SPELLISCY

MODERATOR

Jake Harwood

Co-founder

Staging Labs

Mathieu Baril

Co-founder & CEO

Octav

Matt Singh

Director of Strategic Partnerships

ChainSafe

thedrcenter.org

creativedestructionlab.com

web3canada.ca

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Closing Remarks

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Scott Stornetta

Chief Scientist and Partner, Yugen Partners LLC; Fellow, Creative Destruction Lab

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Privacy Unmasked:

  • W. Scott Stornetta, Equipoise

Privacy Unmasked: the Separation of Information from Effect

©2006 Equipoise Institute

  • The Separation of Information from Effect

Privacy

Information

Effect

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thedrcenter.org

creativedestructionlab.com

web3canada.ca

Thank You