USAs 2018 Joint Economic Report is Pro Cryptocurrency
The Joint Economic Committee (JEC) released a 311 page Economic report on March 13, 2018.
USA’s 2018 Joint Economic Report was generally very positive about blockchain & cryptocurrency
The JEC is one of four joint committees of the U.S. Congress (established in 1946), that is responsible for reporting the current economic condition of the United States as well as for making suggestions to improve the economy.
Starting on page 201:
Chapter 9: Building a Secure Future, One Blockchain at a Time
Some Highlights and the Report’s Conclusion:
The Report suggests blockchain as a potential tool for securing America’s digital infrastructure.
Blockchain technology—providing cybersecurity and many other potential benefits.
These new innovations and markets presented America’s regulatory and legislative institutions with unique challenges as well as technology that could revolutionize the world’s digital landscape and economy.
This particular chapter of the Response discusses a particular technology (blockchain) that is not only nearly invulnerable to cyberattack, but is revolutionizing the way the world conducts commerce and shares information.
The Report noted several Market stats during 2017:
In 2017 the Cryptocurrency market outperformed traditional equity markets
Dow Jones Industrial Average (DJIA): +24%
S&P 500: +17%
Bitcoin: +1,100%
Ethereum: +6,713%
Stock market gains seem meager in comparison.
The buzz surrounding digital currencies resembles the internet excitement in the late 1990s…Many failed, but a few succeeded spectacularly and challenged the conventional
ways of doing business. Mentioned successes were: facebook and Amazon.
- The report also does a fairly good job of defining/explaining:
- Blockchain
- Distributed Ledgers
- Smart Contracts
- Bitcoin Mining (Proof-of-Work)
- ICO (Initial Coin Offerings)
The report also tries to answer the question: “Are Digital Currencies Actual Currencies?”:
Cryptocurrencies resemble real assets or commodities more than currencies, though their future role could expand to include functioning as mediums of exchange.
The report compared ICOs to traditional IPOs:
ICO generated capital in 2017 significantly increased
PricewaterhouseCoopers estimated that an IPO costs companies between four to seven percent of the capital raised and an additional $4.2 million in accounting costs. Companies spend between $1 million and $2 million annually on maintaining their status as a publicly listed entity.
An ICO could take three months and cost approximately $60,000…Many of these
projects will likely fail, as most startups do, but the ones that do survive could transform the way the internet and technology works for decades to come.
The report sited several Blockchain Innovations:
Blockchain technology offers a decentralized, secure, and efficient way to store almost
any form of data across multiple platforms.
Besides many financial innovations, blockchain can give health care providers, patients, and policymakers a portable and secure way to store medical records digitally.
Instead of attempting to skirt laws or regulations—new blockchain products attempt to comply with the current system and even work together with regulators to:
- Coordinating payments
- Monitoring and rewarding patients for following clinical recommendations
- Tracking pharmaceuticals along the supply chain
- Identifying specific supply chain problems such as those associated with the opioid
crisis
Applications ranging from management of the electrical grid and utilities to how companies manage global supply chains, the potential for blockchain is truly revolutionary. Using a distributed ledger would streamline and speed up power delivery, lowering costs and saving power. Blockchains could also enable microgrids from local power sources.
A consensus distributed ledger could allow all companies and government agencies along a distribution chain to record, track, and verify products throughout their journey.
According to the report blockchains can increase food safety, reduce waste and lower costs.
The report also discussed: Securities Regulation, Taxation, Money Transmission, and Future Regulatory Questions.
The “unedited” Conclusion of the report:
Technology presents evolving challenges and generates new
solutions. Blockchain technology essentially stores and transmits
data securely, in large volume, and at high speeds. So far, the
technology has proved largely resistant to hacking, and given this
feature, developers first applied it to digital currencies. Yet
blockchain has many more potential applications, such as portable
medical records and securing the critical financial and energy
infrastructure that the Report identified.
Recommendations
Policymakers and the public should become more familiar with digital currencies and other uses of blockchain technology, which have a wide range of applications in the future.
Regulators should continue to coordinate among each other to guarantee coherent policy frameworks, definitions, and jurisdiction.
Policymakers, regulators, and entrepreneurs should continue to work together to ensure developers can deploy these new blockchain technologies quickly and in a
manner that protects Americans from fraud, theft, and abuse, while ensuring compliance with relevant regulations.
Government agencies at all levels should consider and examine new uses for this technology that could make the government more efficient in performing its functions.
Report Source (.pdf):
file:///Users/yum/Desktop/CRPT-115hrpt596.pdf
All in all I was very pleased to see how much the report was so keen on crypto and blockchain in general, the big question is how many government representative will take the time to read the report?
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Green-Eco-EV News Reporting by Ken Green Burridge
Kenneth Burridge test-drives electric Nissan LEAF in Melbourne Australia
Independent green journalist, EV of the Year Judge, photographer, author and sustainability activist that has published over 1000 articles. Mr Burridge’s travels have taken him to over 40 countries and 300+ major cities. He is originally from the USA, but has been residing in Australia for the last seven years. Connect to Ken Burridge on: Twitter, steemit, facebook, Google+, Linked in or website
