Shaping the Future of P2P Financial Systems in Dubai: P2PFISY 10th Edition

On 16th and 17th October, Exponential Science co-hosted with the Virtual Assets Regulatory Authority [VARA] the 10th edition of the Peer-to-Peer Financial Systems Workshop (P2PFISY) in Dubai.

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The event, set against the bustling backdrop of a city known for its growth in finance and technology, took place at the 25hours Hotel, located in the vibrant World Trade Center area. Amid a busy week of tech, finance, and Web3 gatherings, the workshop stood out as a hub for discussing regulations and the future of technology, driving innovation and research across finance and digital assets.

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At the start of the event, Dr Paolo Tasca, P2PFISY Founder, Chairman, and Co-Founder of DLT Science Foundation and Exponential Science, took the stage to announce the launch of Exponential Science. Dr Tasca introduced the new venture, emphasising how the new foundation will seek to capture the convergence of emerging technologies such as AI, IoT, blockchain, Deep Tech, and more, in its mission to expand today's science for tomorrow's technology.

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The workshop attracted a diverse audience, including global industry leaders, regulators, academics, startup founders and finance enthusiasts, all eager to explore the future of peer-to-peer and decentralised financial (DeFi) systems. High-profile speakers shared their views and the latest research on emerging trends, regulatory challenges, and integration between traditional finance (TradFi) and DeFi.

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Key Themes and Discussions

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A prominent theme throughout the event was the ongoing debate surrounding regulation versus non-regulation, including privacy concerns, taxation, and the complex regulatory landscape that nations face when implementing digital currencies. Speakers illustrated some digital currencies and Central Bank Digital Currencies (CBDCs) case studies with those from various regions, including Nigeria, Kenya, and Europe, when, for example, Salvador Perez-Galindo, Senior Advisor on Global Government Engagement at VISA, explored the evolution of digital currencies.

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Discussions also addressed the disparities between developed and developing countries, with panellists noting that countries such as India, Argentina, and some in Africa face distinct challenges compared to the U.S. or Europe. Amit Kumar Gupta, a Legal Practitioner at the Supreme Court of India, emphasised the need for louder advocacy to shift lawmakers' perceptions of blockchain, often associated solely with money laundering or terrorism financing​.

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The need for education and simplified narratives in Web3 was another recurring topic, with panellists stressing the importance of making decentralised technologies accessible not only to the general public but also to corporate leadership. Betsabe Botaitis, CFO at Hedera, advocated for clearer communication to demystify Web3 and increase adoption. "We must simplify our language and narrative" she stated, while she emphasised the need for new talents to be educated on these new technologies.

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The event also explored sustainability in blockchain technology. Panelists discussed the carbon footprint of blockchain and how social accountability should be incorporated into governmental and environmental strategies. Ettore Maria Lombardi, Professor at the University of Florence, noted: "Sustainability is something we don’t understand clearly." 

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Meanwhile, Juan Ignacio Ibañez, Technical Committee Member of the MiCA Crypto Alliance, highlighted the need for comparable methods to measure and offset emissions: “Many parties prefer carbon credits instead of carbon offsets, because a ton of carbon is what it is, no matter what.” These sentiments were echoed by other speakers and the panel moderator, Kristina Lucrezia Cornèr, Strategic Advisor at Cointelegraph, called for global solutions to address the pressing global issues of climate change and sustainable finance​.

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TradFi Meets DeFi: Challenges and Opportunities

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One of the workshop's central themes was the integration of TradFi with DeFi, particularly regarding the tokenisation of assets and cross-border payments. A panel on Real World Assets (RWA) and Real Estate Tokenisation led by Kristi Swartz, Partner at DLA Piper, explored the potential of tokenisation to democratise access to investment opportunities. Niall Roche, Founding Partner of The Building Blocks, highlighted the benefits for younger generations to gain exposure to real estate markets through tokenised assets, while Reza Bundy, CEO and Chairman at Atlas Capital Team L.P., emphasised that such innovations could provide long-term stability for governments.

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The discussions on stablecoins and security tokens evidenced different views on their future. Patrick Hansen, a Senior Director of EU Strategy and Policy at Circle, underscored the varying levels of redeemability and liquidity among stablecoins, while Marco Di Maggio, Professor at Imperial College Business School, observed a shift toward lower-risk financial products as larger players entered the market and suggested that the future lies in finding a balance between risk and return.

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The Role of AI and Consumer Protection

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Generative AI's impact on the financial sector was another major topic. Speakers such as Ikhlaq Sidhu, Dean of IE University, pointed out the sustainability challenges posed by AI's increasing energy consumption. In his talk on consumer protection, Nikhil Vadgama, Co-founder of DLT Science Foundation and Exponential Science, discussed the risks associated with AI-generated content, including deepfakes and misinformation, and advocated for regulatory frameworks that would protect consumers without stifling innovation.

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A Successful Conclusion and a Look Ahead

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The workshop concluded with an evening aperitif on the rooftop of the 25hours Hotel, offering breathtaking views of Dubai's financial district and the Museum of the Future. It was an opportunity for attendees to network and reflect on the event's engaging discussions. As Francesco Pierangeli, the Master of Ceremonies and Deputy Director at the UK CBT, remarked, “Dubai’s welcoming attitude and growth mindset have successfully attracted global talents to build and innovate, placing it as an ideal place to discuss digital assets.”

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As P2PFISY continues to grow, plans are already underway for the next edition, with the organisers striving to make each workshop more innovative and impactful than the last. Stay tuned for updates on future events as the community continues to drive the conversation on the evolving landscape of finance and technology.

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