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Two of England’s mayors have outlined their proposals to revive rail in the Midlands and North post-HS2, insisting they “won’t accept a do-nothing scenario”.

Greater Manchester’s mayor, Andy Burnham, and his West Midlands counterpart, Andy Street, teamed up after the government axed the northern leg of the high speed rail project last year, and are trying to find an alternative to improve services between the cities with the help of the private sector.

Now the pair have offered up three options – from smaller upgrades through to a whole new line – they believe would provide “real benefits” to both their areas.

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Briefing journalists at an event in Birmingham, Mr Burnham said failing to increase capacity in the North West “would be damaging to economic growth in the regions and would mean the West Midlands and Greater Manchester would be set back”.

West Midlands mayor Andy Street (l) and Greater Manchester mayor Andy Burnham
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West Midlands mayor Andy Street (left) and Greater Manchester mayor Andy Burnham

He also said it would leave the UK “with quite a serious transport headache for the rest of this century”, with both the West Coast Main Line and the M6 already “at capacity”.

The mayor added: “Having been promised Northern Powerhouse Rail with HS2 at its heart… we won’t accept a do-nothing scenario.”

Mr Street outlined the alternatives on the table following the work they carried out with a private sector consortium – including engineers, construction firms and finance experts, led by former HS2 boss Sir David Higgins.

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The proposals are to either:

• Enhance the existing West Coast Main Line to “improve some of the most constrained parts” – though Mr Street warned it was the “minimal capital” option offering “minimum advantage”;
• Build major bypasses to the line at the southern end, as well as between Crewe and Stockport, alongside upgrades to the existing line;
• Construct a completely new and segregated line, but not built to the specification of the high-speed line in the south.

They could not commit to Sky News that there would be no need for public funding, but insisted it was “the less complicated part of the network” due to no need for tunnelling, and the transport benefits would be “huge”.

Mr Burnham also denied the ideas were “HS2 by the back door”, telling reporters they had “reluctantly” accepted the decision to scrap the second leg of the high speed project.

But Mr Street added: “We do believe there is a real benefit in one of those three or some blend between them,” added Mr Street.

The mayors shared a map of where their proposals would be focused - between Birmingham and Manchester.
Image:
The mayors shared a map of where their proposals would be focused – between Birmingham and Manchester.

Both mayors also praised the approach of Transport Secretary Mark Harper to their work, saying they held a “constructive” meeting with him last week and planned further talks in March.

The minister had previously suggested he was “open-minded” to any proposals, though he remained “somewhat sceptical” about whether HS2 could be completed without public investment.

Asked by Sky News about doubts in Westminster over their project, Mr Burnham said there were schemes “around the world” that had been largely privately funded, such as the expansion of the TGV in France, showing it can work.

“Those sceptical MPs really should look up some of what’s been done in other parts of the world where infrastructure have been delivered successfully in a less costly way than the original HS2 [line] and where the private sector has played a considerable role in taking the risk off the public sector,” he said.

“This is not unrealistic or pie in the sky. There are plenty of examples.”

West Midlands mayor Andy Street also praised the approach of Mr Harper, telling Sky News: “It would have been very easy for the government to double down on the difficult decision they took at the Conservative Party conference.

“They have not done that.”

He adds: “The transport secretary has said it. He says he is ‘open-minded’ and described the meeting last week as ‘constructive’, so they are definitely willing to examine the outputs of this.”

But despite all the work with the private sector, would the final plan still need taxpayer cash?

“Not necessarily,” said Mr Burnham. “But that’s what [our] work will be looking at.”

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Crypto urges SEC to see the good in blockchain privacy tools

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Crypto urges SEC to see the good in blockchain privacy tools

Crypto industry executives have urged the US Securities and Exchange Commission to shift its thinking on blockchain privacy tools, pitching that there are legitimate applications for them outside of criminal use.

The SEC hosted crypto and finance executives for a discussion and panel on financial surveillance and privacy on Monday, the agency’s sixth crypto-focused roundtable this year, as it seeks to overhaul its approach to crypto.

StarkWare general counsel Katherine Kirkpatrick Bos, who participated in a panel discussion, told Cointelegraph after the event that a major takeaway was that there shouldn’t be an assumption that those using and creating privacy tools are “overwhelmed by wrongdoers.”

“Why is the assumption that an individual needs to affirmatively prove that they are compliant or they’re using the tool for good?”

“As opposed to it being the other way around, where the assumption is that this individual is using the tool for good until there is some sort of indication that they’re using it for bad,” she said.

Kirkpatrick Bos added that “of course, wrongdoers were using, or are using those tools, but there needs to be a balance.”

Katherine Kirkpatrick Bos (left) discussing financial privacy at an SEC roundtable on Monday. Source: Paul Brigner

During the roundtable, Wayne Chang, the founder and CEO of the credential management company SpruceID, said some percentage of users of stablecoins, a crypto tool that is slowly becoming mainstream, will want privacy.

“There are a ton of stablecoins that aren’t onchain yet that would come onchain if there is privacy,” he said. “We’re going to see an increase in demand for privacy-preserving blockchains.” 

“My hope is that regulators continue to engage industry, and we can have those discussions on how to keep privacy for folks while also having tools that are useful,” Chang said.

Customer checks are becoming outdated

Kirkpatrick Bos said a discussion on Know Your Customer (KYC) and Anti-Money Laundering (AML) measures focused on whether current rules are sufficient in the age of artificial intelligence.

“The question arose and was debated on the panel, well, what is necessary for Anti-Money Laundering?” she said. “Now we have AI. It’s made manual, AML and KYC antiquated. How do we solve for that?”

“There was a sense that the current system of AML and KYC is antiquated, it’s problematic, it’s ineffective,” she added. “But there needs to be some sort of check when it’s a centralized entity facilitating flows of money to ensure that they’re not helping wrongdoers.”

Many financial institutions request a picture of a user’s driver’s license for its KYC checks, which Kirkpatrick Bos said was “absurd, because an individual can go on the internet and develop a fake driver’s license in a matter of seconds.”

“So the question is, can cryptography-based tools improve that and make it harder for bad guys to do that? But can they also do that and make it harder for bad guys while preserving an individual’s privacy and not revealing data like an address, where it is not necessary to vet the legality of the funds?” she added.

Some projects have begun to test crypto-based solutions for proving identity while claiming to preserve privacy, such as Sam Altman’s World, which gives users a cryptographic key they can use to prove they’re human.

SEC’s Atkins warns of potential for crypto mass surveillance

SEC chair Paul Atkins had given opening remarks at the roundtable, warning that if “pushed in the wrong direction, crypto could become the most powerful financial surveillance architecture ever invented.”