US Government Accountability Office proposed options for using blockchain

In the report, the regulator noted the technology’s potential in improving the state’s financial and non-financial systems

28.03.2022 - 12:30

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In the report, the regulator noted the technology’s potential in improving the state’s financial and non-financial systems.

What’s new? At the request of Congress, the US Government Accountability Office (GAO) has provided recommendations to policymakers and also outlined options for the application of blockchain. In the report, the GAO noted the technology’s potential in improving the state’s financial and non-financial systems. They believe that blockchain will increase the speed of the rights registration system and reduce the cost of insurance. The regulator suggested 4 options for using blockchain:

standards development;
oversight;
educational materials;
appropriate use of the technology.

The GAO’s report

What options does the GAO recommend? In setting standards, the regulator anticipates addressing operational interoperability and data security concerns. According to the GAO, exercising oversight can help with issues related to legal and regulatory uncertainty and regulatory arbitrage. The GAO representatives say it can mitigate risk issues for financial systems if blockchain is used correctly.

Who are the recommendations developed for? The GAO issued a report to Congress, federal agencies, state and local governments. The report cited various non-financial implementations of the technology, including voting, pharma, and government operations.

What had happened before? On March 9, the White House released a government-wide strategy for regulating the sphere of cryptocurrencies. The document outlines an approach to address the risks and potential benefits of digital assets and their underlying technologies.

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