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Blockchain Promotion Act Is Underway

By July 16, 2019April 28th, 2021No Comments

The interesting thing about tumultuous time we live in is that every now and then lawmakers are falling behind the phenomena which are emerging faster than ever before in history. We have already written about blockchain. It has become inseparable part of financial technology, which is just one of its applications. However, we are yet to see its full potential.

The US Congress Is Moving Forward on Blockchain Promotion Act

Blockchain Promotion Act has been introduced in February this year. Interestingly, this is one of the rare bi-partisan Acts. It means that both the Senate and the House of Representatives introduced and supported it. The necessity to put such a Bill into effect is obvious.

The goal of Blockchain Promotion Act is to offer the overall guidelines in applications of blockchain technology in various industries.  Creating standards in implementing a certain technology is beneficial to both the consumers and the government as the overseeing entity. Senator Ed Markey, a Democrat from Massachusetts and co-sponsor of the bill, was quoted saying: “Blockchain is an exciting new technology with great potential and promise.”

The Blockchain Working Group

In order to explore all aspects of blockchain implementation, the Act also proposes the creation of the Blockchain Working Group.  The Group should work closely with not just the lawmakers and government sectors, but with privately owned companies as well. The goal is to get a better look into how the private entities have introduced blockchain and whether they encountered any challenges on the way. The Group shall also measure the benefits in the process. After a year of research, the Blockchain Working Group should submit a report to the Congress. They would also represent the software providers, academics, representatives of various industry sectors, business owners, etc.

Advantages of Introducing Blockchain in Government Sector

The experts in the field of blockchain claim that this technology has immense number of advantages. Furthermore, the private sector has recognized the possibilities that blockchain offers and transferred either parts of its businesses or the entire processes to blockchain.

The field where this is clearly visible is supply chain management. We have seen giants such as Walmart, or Target introducing blockchain successfully. Additionally, we have also witnessed drug companies exploring the same possibilities. Their goal is to provide the highest possible quality of products. In order to do so, they need to have instant access to various data, such as: provenance of each ingredient/component, as well as to the detailed information on each step of production, distribution, sales and so on. Blockchain can provide that.

Thereupon, when it comes to government sectors, blockchain technology can also help. This help reflects in preventing tax fraud, eliminating sufficient administrative tasks, or keeping storage or important documents in impeccable order.

There was also an example of successful trial period in introducing blockchain in the US National Archives and Records Administration (NARA). The Archive needed the technology which could enable them to prevent falsification of documents while keeping the sources in order. The trial included more than 20,000 docs relating to the J.F. Kennedy’s assassination.

Probably the fastest growing interest in blockchain is in the field of clean energy supply. This is the project that proved successful in the USA and Australia as well.  Consequently, it secured production of energy from clean sources and its distribution among the users of the grid, making many households independent. Washington State is among the most progressive US states in this respect.

The Prediction for Blockchain Promotion Act

It is a fact that the US need The Blockchain Promotion Act. Nevertheless, it still has to pass some time for this Act to become a Bill in effect.  However, the encouraging fact is that there are already bills that have been introduced relating to blockchain technology. Hopefully, we will see this happen soon. Regardless of the fact whether all parties involved are in favor of blockchain and one of its applications – the cryptocurrencies, the technology itself needs to be regulated in order to put it into effect successfully.

Do you think government-controlled entities will benefit from introduction of blockchain?



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