The American assault on the blockchain – 4 key options for future cryptocurrency supremacy

Blockchain in the United States, why not …In early March 2022, the President of the United States, Joe Biden, was about to sign a Executive decree intended to outline the government’s plan for cryptocurrencies. However, blockchain technology continues to appeal in the United States. In fact, the U.S. Congressional oversight and investigation body, the Government Accountability Office (GAO), has just released a report to help policymakers implement blockchain technology.

Blockchain, but for what?

The GAO begins his report by presenting how blockchain works and the key differences between public blockchain and private blockchain. Furthermore, the GAO takes up the fundamental notions intersected by blockchain technology: smart contracts and consensus protocols.

Next, the organization highlights the potential of blockchain to enhance a whole range of financial and non-financial use cases.

Examples of potential use cases for blockchain technology – Source: GAO

The GAO also established a synthetic organizational chart for decision makers like the CongressThey federal agenciesThey state governments Americans and academic institutions and research. This flowchart should allow these actors to determine the requirements for implementing blockchain technology.

Flowchart designed by GAO to help decision makers determine where blockchain technology might be useful.
Flow chart for determining the usefulness of blockchain technology – Source: GAO

Additionally, the U.S. Congressional Investigative Body notes that:

“Legal or regulatory uncertainty could prevent some potential users from taking advantage of the blockchain.”

GAO report March 2022

Furthermore, it is this observation that led him to identify himself 4 optionswhich policy makers are strongly encouraged to consider.

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The four policies proposed by the GAO

First, the GAO produced this report at the request of the US Congress to help the country’s policy makers implement blockchain technology. The goal is to take advantage of the benefits of this technology, minimizing the disadvantages.

Therefore, the GAO recommends 4 policy options that can facilitate the decision-making process, which underlies the implementation of blockchain technology. According to the GAO, shaping these policies would address most of the challenges posed by blockchain technology. The four policies recommended by GAO are:

  • Set standards : GAO recommends collaboration among policy makers to achieve a standardization of standards focused on the development, implementation and use of blockchain technology. This policy would allow addressing the challenges related to interoperability and data security.
  • Clarify the monitoring mechanisms : the goal is to provide for the correct monitoring of blockchain applications. This policy could solve the problems of legal and regulatory uncertainty.
  • Publish educational content : This content would allow users and various regulators to better understand blockchain technology, beyond existing use cases. This option might help with comprehension problems.
  • Communicate on appropriate use cases : GAO suggests that policy makers support activities to determine whether blockchain technology is appropriate to achieve specific missions and goals. This policy is likely to mitigate risks, particularly to financial systems.

Finally, the GAO points out the lack of authority of the Commodity Futures Trading Commission (CFTC) in its collaboration with non-governmental bodies.

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