US Congress agency recommends 4 key policy options for blockchain
Per the request of the United States Congress, the U.S. Government Accountability Office (GAO), laid out four policy options to help policymakers implement blockchain technologies while enhancing benefits and mitigating challenges.
The technology assessment shared by the GAO acknowledged the potential of blockchain technology in improving a variety of financial and non-financial applications despite raising concerns about introducing new challenges while trying to resolve issues related to traditional systems:
However, some of the challenges highlighted in the study include uncertain benefits, data reliability and legal compliance.
With the above flowchart, GAO aims to help policymakers — including Congress, federal agencies, state and local governments, academic and research institutions, and industry — determine the requirement of blockchain implementation.
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The GAO assessment further highlighted various non-financial implementations of blockchain technology, as shown below.
While policymakers have the right to maintain the status quo, the GAO recommended four policy options to ease the decision-making process that goes behind mainstream blockchain implementation — standards, oversight, educational materials and appropriate uses.
With setting standards, GAO envisions tackling challenges around interoperability and data security. Some considerations include implementations of consensus mechanisms and establishing internationally recognized standards.
According to GAO, an oversight policy can “help address
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