The United States Government Accountability Office (GAO) has laid out four policy options to help policymakers implement blockchain technologies. The GAO’s technical assessment recognized the potential of blockchain technology in improving a range of financial and non-financial applications.
This comes despite concerns about introducing new challenges while trying to resolve issues related to traditional systems. The GAO says blockchain technology might increase the speed of a title registry system and lower the cost of title insurance. It can achieve this by making title registration simpler and more trustworthy.
It also highlighted some challenges, including uncertain benefits, legal compliance, and data reliability. GAO wants to help policymakers determine the requirement of blockchain implementation. Its assessment suggests various non-financial implementations of blockchain technology in voting, real estate, coffee supply chain, digital IDs, federal government operations, etc. The GAO recommended the policy options to ease the decision-making process that goes behind mainstream blockchain implementation, such as educational materials and standards.
The government body wants to tackle challenges around interoperability and data security. It suggested for implementation of consensus mechanisms and establishing internationally recognized standards. Moreover, the GAO says oversight policy can help address challenges with legal and regulatory uncertainty and regulatory arbitrage. It recommended the issuance of educational materials for tackling challenges around the limited understanding.
It calls for uses and talks about mitigating issues around risks to the financial systems, undefined benefits, and costs.
