At the request of the United States Congress, The United States Government Accountability Office (GAO) laid out four policy options to help policymakers apply blockchain technology while enhancing benefits and mitigating challenges.
The technology assessment shared by the GAO recognized the potential of blockchain technology to enhance a variety of financial and non-financial applications.despite raising concern about the introduction of new challenges while trying to solve the problems related to traditional systems:
“A blockchain could both increase the speed of a title registration system and reduce the cost of title insurance by making title registration easier and more reliable.”
However, Some of the challenges highlighted in the study are uncertain benefits, data reliability and legal compliance.
With the flowchart above, the GAO aims to help policymakers -including Congress, federal agencies, state and local governments, academic and research institutions, and industry- to determine the need to implement blockchain.
Curious about blockchain and how it’s used? In our latest blog post, we dive into blockchain’s many uses and how to address emerging policy challenges. Find out more: https://t.co/ae21mF7IMg pic.twitter.com/F5puP4VIUJ
— USGAO (@USGAO) March 24, 2022
Are you curious to know what blockchain is and how it is used? In our latest blog post, we will delve into the many uses of blockchain and how to address new policy challenges. Read more information:
The GAO assessment highlighted several non-financial implementations of blockchain technology.as it’s shown in the following.
While policy makers have a right to maintain the status quo, The GAO recommended four policy options to facilitate the decision-making process involved in the widespread implementation of blockchain: standards, oversight, educational material, and appropriate uses.
With the establishment of standards, the GAO plans to address the challenges around interoperability and data security. Some considerations include the implementation of consensus mechanisms and the establishment of internationally recognized standards.
According to the GAO, a supervisory policy can “help address the challenges posed by legal and regulatory uncertainty and regulatory arbitrage”. In addition, the GAO recommends the publication of educational materials to address the challenges around limited understanding and undefined benefits and costs.
The fourth policy option, appropriate uses, talks about mitigating challenges around risks to financial systems and undefined benefits and costs. Highlighting the lack of authority of the Commodity Futures Trading Commission (CFTC) to collaborate with non-governmental entities, the assessment states:
“Legal or regulatory uncertainty may prevent some potential users from benefiting from blockchain.”
March 5, The Virginia Senate unanimously approved a request to amend the bill that now allows traditional banks in the region to provide virtual currency custody services.
As Cointelegraph reported, the bill was introduced by Delegate Christopher T. Head in January 2022and declares:
“A bank can provide virtual currency custody services to its customers as long as the bank has adequate protocols in place to effectively manage risks and comply with applicable law.”
The bill passed the Senate by a wide vote of 39-0 and is awaiting signing into law by Virginia Governor Glenn Youngkin.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.