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Blockchain, Cryptocurrency, Featured, Technology

Why Should the US Government Concentrate on Blockchain, Crypto and ‘Digital Dollar’?

While the covid-19 pandemic unfolds, the administration of Biden Harris has started implementing innovative strategies for restoring the economy of the United States. With the notable implementation of upcoming technologies, thereby ensuring the privacy of data, it should also signify as the top priority for the White House administration to hold into consideration. 

Numerous executive chairmen of blockchain research institutes aim at developing other emerging technologies along with blockchain. With the covid-19 pandemic spurring an era, government leaders now need to acknowledge the digital realities. 

It signifies the time for government leaders to form a comprehensive framework to achieve justice, sustainability, social cohesion, prosperity, and good government. 

The Second Era of the Digital Age

The world happens to be facing the advent of the second era of the digital age. It is described to be a tri-version of blockchain technology, the Internet of Things, and artificial intelligence. It can also be referred to as an innovation taking place, thereby being something that happens to be forcing the federal leaders to become experienced and knowledgeable regarding how such technologies can successfully be enforced on the government level. 

Concerning the attempt for raising awareness for upcoming technologies, thereby representing the blockchain and digital asset industry, government officials now can re-imagine its technology policy and strategy. It explains how government leaders can reduce the unwanted consequences of upcoming technologies like job losses and data abuse due to the result of artificial intelligence-powered machines. 

According to reports, a survey was conducted on a series of five priorities aiming to help the Biden Harris administration for achieving a long-term digital strategy. It includes embracing cybersecurity for protecting privacy and identity, thereby acknowledging cryptocurrencies and digital dollars, hence holding officials accountable and engaging with citizens. In turn, it stimulates the innovation economy of America, thereby retooling government services. With each of these problems being important, it was also considered that blockchain technology serves to be a critical foundation layer. 

The covid-19 pandemic has revealed that conventional supply chains remain inadequate and due to this, they need to leverage blockchain-based networks, thereby capable of offering multi-party transparency and trust. For example, the vaccination rollout of the covid-19 pandemic happens to be referenced noting that greater efficiency and speed might very well be possible with the help of blockchain networks.

Maximum agencies are processing to struggle with the abundance of legacy business processes, legacy resources and governance processes, and legacy technologies, each with cost-effectiveness and attendant cybersecurity issues. Due to this, various agencies cannot successfully meet citizen expectations concerning secure government services. Despite this, the new Biden Harris administration is likely to play a crucial role in making sure that blockchain technology is likely to act in the best interest of US citizens. With that being stated, it also emphasizes the value of self-sovereign digital identity. 

As per reports, data has turned out to become the new asset class of the second digital age, however, while the citizens continue to generate data Technology conglomerates happen to be exploiting this information regularly. Various companies have recently experienced data leaks, namely some privacy apps. 

Every citizen requires a self-sovereign digital identity, thereby emphasizing that the United States needs to be the first nation where a citizen should truly own their data. The government needs to encourage the various efforts underway that leverage blockchain in utilizing user data and protecting digital identity confidentially. 

Fight for the Digital Dollar

While China becomes the first major economy in the world to implement a Central Bank digital currency, the foreign trading partners of China already are moving with a reserve currency. Regrettably, various US government leaders are unaware of the advantages associated with cryptocurrency, thereby resulting in the slow adoption of US government-supported digital currency. 

With the central focus laid on US Central Bank digital currency also referred to as the digital dollar, increasing financial inclusion happens to be one of the numerous reasons why the United States of America should prioritize the central bank digital currency experimentation. Central Bank digital currency in the United States can search to be an on-ramp to financial inclusion for populations having historically been underserved by conventional banking services. 

A Digital dollar can be the starting point for innovative services provided to underbanked populations along with smartphone wallet services. It also could support essential services like government-sanctioned digital IDs, savings programs, financial education services, Robo advising, and alternative credit scoring tools. It can be a beneficial tool in the distribution of government-aided payments like food stamps and social security benefits. 

Will the United States Government Adopt CBDC? 

While reports present valid arguments, it is unquestionable whether or not the digital priorities outlined can truly be implemented under the new Biden Harris administration. Luckily, several cryptocurrency-friendly officials have been sworn into office and expressed the requirement for legitimate use cases of decentralized finance and cryptocurrency. They further have warned regarding the misuse of cryptocurrency, thereby urging the US government to fight these issues. 

Being aware of some opposition, the officials remain confident that the report is likely to serve as an overall helpful guide for lawmakers. As a result, there has been a concentration on blockchain technology, Financial Technology, and digital currencies. It is time for governments to make a decision. A big pressure lies for profound change as the Institutions and Systems have shown weaknesses exposed by the covid-19 pandemic. 

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