CREATe is happy to present the third entry in our series of working papers released in 2025: ‘The Decentralized and Automated Economy: A Research Roadmap for the Medium-Term Future’, by Konstantinos Stylianou and Zihao Li from the University of Glasgow.
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This paper outlines key issues identified during the inaugural policy roundtable of the CREATe new theme ‘Automation, Decentralisation & Platforms’ held on 18 October 2024, aiming to guide future research and policymaking around emerging technologies such as Distributed Ledger Technology (DLT) and Artificial Intelligence (AI). Contributors included representatives from academia, industry, law firms, international organizations, and governments, fostering diverse insights on pressing topics such as governance in decentralized finance, the rise of private money (e.g., stablecoins), decentralised governance for AI, manipulative AI, and global AI governance trend.
The paper highlights the complexities and evolving nature of trust and governance in decentralized finance (DeFi). Despite blockchain technology’s initial promise of trustlessness, the industry has seen a shift back towards reliance on intermediaries such as crypto exchanges and custodians, leading to debates around trust in technology versus institutions. Additionally, the rise of stablecoins and other private digital currencies has sparked regulatory concerns over financial stability, sovereignty, and consumer protection. The fragmentation of regulatory efforts across jurisdictions and the fast-paced innovation cycle pose significant challenges for coherent governance.
Moreover, the paper further explores constitutional issues raised by AI integration into public decision-making, notably in policing and welfare. It stresses the urgent need for robust legal frameworks that safeguard transparency, accountability, and human rights, as AI technologies pose risks including algorithmic bias and infringement of individual privacy. The discussion also covers AI-driven dark patterns and manipulative design strategies, which complicate existing regulatory mechanisms. Additionally, the potential of blockchain technologies to enhance AI governance through decentralized oversight mechanisms and increased transparency is proposed. The paper concludes by comparing global AI regulatory challenges. CREATe invites stakeholders to further engage with these pressing topics, promoting interdisciplinary research agenda and collaboration for shaping effective and responsive regulatory frameworks.
Full paper can be downloaded here.