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US makes 4 key recommendations to legislators for smooth blockchain implementation

US makes 4 key recommendations to legislators for smooth blockchain implementation
Photo Credit: Pixabay
28 Mar, 2022
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In a move that can potentially iron out glitches in the implementation and usage of blockchain technologies, the US Government Accountability Office (GAO) has released four policy recommendations to lawmakers. GAO opined that its policy recommendations would be instrumental in enhancing the benefits and mitigating challenges posed by the use of technologies that underpin cryptocurrencies.

While the first recommendation sought that the policymakers could ‘collaborate’ to ‘unify standards’ that focus on the development, implementation, and use of blockchain technologies, the second one opined that policymakers could clarify existing oversight mechanisms, including regulations, or create new mechanisms to ensure appropriate oversight of blockchain applications. 

Likewise, the third recommendation advised policymakers to support the development of ‘educational materials’ to help users and regulators better understand blockchain technologies beyond existing financial applications, the fourth one was seeking support activities designed to determine whether blockchain is appropriate for achieving specific missions and goals or to ‘mitigate specific challenges’.

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“Blockchain has multiple qualities that make it suitable for storing a title registry system. A blockchain might both increase the speed of a title registry system and lower the cost of title insurance by making title registration simpler and more trustworthy. It may also simplify access to the myriad of documents and information needed to register title and transfer ownership. Using a blockchain to ensure all documents are accurate and complete may eliminate the need for some intermediaries, such as notaries and registrars,” as stated by GAO in its technical assessment.

While discerning the potential non-financial and financial uses of blockchain, including its ability to reduce costs and accelerate financial inclusion, it maintained that this technology could pose enormous risks if it is not regulated.

“While this emerging technology could help level the playing field for businesses of all sizes or enable greater financial inclusion, it also faces some challenges and poses some risks to the consumers and businesses that hope to use it,” GAO stated in its official blog.

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