11 lawmakers urge US Treasury to consider Blockchain for recovery from COVID-19 crisis

11 lawmakers urge US Treasury to consider Blockchain for recovery from COVID-19 crisis - DLT and BlockchainEleven members of Congress ask the U.S. Treasury Department to investigate new technologies, including blockchain and distributed ledger technology (DLT), to simplify the way money and supplies are distributed under federal law seeking to revive the economy. during the crisis for COVID-19.

A letter signed by 11 legislators in favor of DLT and Blockchain

A letter addressed to Treasury Secretary Steven Mnuchin indicates that invest in blockchain and DLT as safe "new mechanisms" to move money quickly and transparently, which in turn could increase liquidity in the distribution of funds through the federal CARES law.

U.S. MP Darren Soto (D-Fla.) Led the letter in which 10 other US lawmakers participated, dated April 23 but publicly released on Tuesday April 28. "We understand that the primary mission is to provide urgent and necessary assistance to small businesses and working families in America," says the letter.

"As the pandemic continues to affect the economy, we are eager to support the Administration's efforts to make small American businesses work, also giving priority to health, safety and adequate control."

However, the letter continues, the Treasury Department can take "further steps" to improve its efforts. “We therefore strongly encourage the Treasury department to use private sector innovations such as blockchain and DLT to support the government's necessary functions to distribute and track relief programs and stress that all guidelines support the use of technology to facilitate delivery of the benefits of the CARES Act, ”says the letter.

"These initiatives will ensure both that America maintains its technological edge and that relief is delivered quickly to small businesses and individuals who need it most." The letter indicates China's implementation of its blockchain system as an example of other nations pursuing the same technology.

Why blockchain?

Soto, who is co-president of the Blockchain Caucus Congress, said he spoke to developers, entrepreneurs and other Caucus members in drafting the letter. In his view, blockchain or DLT tools could be the safest available to solve some logistical challenges that the federal government is facing.

Blockchain-based systems could be associated with artificial intelligence (AI) to better manage the data monitored or transmitted, he said. Soto sees AI as an additional tool rather than a means of taking charge of a distribution network.

Policy makers should still set strict parameters and humans should still act as administrators for such a system, he said. Due to the COVID-19 crisis, there is much more demand for certain goods than the supply and getting people to manage the distribution of these is a difficult task.

"I think it is worth doing at least pilot programs," said Soto. "During this terrible crisis there are opportunities to advance technologies," he said. "This gives us the opportunity to potentially achieve greater efficiency for many of these logistical problems."