Can technological innovation, along with the boldest kind of leadership, work together to begin solving the most insoluble problems facing America? On July 21, let’s find out. The countdown to MerITocracy 2022: American Innovation Forum is underway.
Ahead of the face-to-face forum in Washington, DC, we are preparing a series of big issues that will draw serious attention to MerITocracy 2022. And preparing some big guns in Congress: Rep. Bill Foster, D. -Ill, and Tom Emmer, R-Minn. – together with the CEO of the Digital Chamber of Commerce, Perianne Boring, to indicate the way forward.
In today’s issue of Countdown to MerITocracy, we take a look at cryptocurrency:
and, most importantly, the blockchain technologies that enable such booming assets, and how these are being subjected to serious scrutiny by government policymakers. Here’s a troubleshooter to help separate the hype from reality:
First of all, cryptocurrency as an asset class is a spectacular disaster:
- In the absence of government measures to limit its use, a very impractical step, cryptocurrency and the global non-government currency market will flourish or wither depending on the supply, demand and consensus of assets in the asset class.
- If a measure of stability is needed to establish any currency as a world-leading medium of exchange, the extreme volatility of cryptography leaves it out of the foreseeable future. Example: The capitalization of the global cryptographic market amounts to $ 2.7 trillion in November 2021 and falls to $ 1.2 trillion in May.
- Regulatory outlook: very high, as both the White House and Congress are already taking steps to examine greater regulation of a broader class of “digital assets” that include cryptocurrencies.
- Most notably, President Biden issued an executive order earlier this year to address the risks and rewards of these assets over the next year. Areas of scrutiny include: consumer and investor protection; financial stability; illicit financing; US leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. The White House Office of Science, Technology and Policy is also analyzing the environmental impact of cryptocurrency and its energy-intensive “mining” processes.
- In Congress, a bill introduced in the House in April would increase market oversight, led by new authorities for the Commodity Futures Trading Commission. At the same time, the Senate is drafting bipartisan legislation to create a comprehensive regulatory framework for cryptocurrencies. At the same time, IRS officials say they want more funds and changes to tax codes to keep a close eye on cryptocurrency holdings.
- Regulatory Bank: It is very likely that the government will impose some kind of regulation on the cryptocurrency market to the extent that it can do so in a global market. It remains to be seen whether such regulations have any material impact on growth.
Second, the underlying blockchain technology is real gold:
- Blockchain, defined as a shared database shared between the nodes of a computer network, blockchain technology stores information in a digital format and plays a crucial role in cryptocurrency systems to maintain secure and decentralized records of transactions. Proponents of her case have been working to make the actual transcript of this statement available online.
- Forget about cryptography, how about cyber security and the supply chain. In addition to its probably best-known role as a cryptocurrency enabler, technologists have been offering blockchain technology for years for a number of other purposes that can provide both business and social benefits. Such as supply chain tracking, digital identification, data sharing, voting, copyright protection, data backup, medical record keeping, and gun tracking, just to name a few. Those sound like apps that can solve the big problems that MerITocracy is looking at.
Finally, why it is important to solve major problems:
- For all the right reasons, better technology to protect supply chains, improve cybersecurity through more secure digital identification, better protect data from ransomware attacks, and improve the maintenance and exchange of medical records are the types of applications that can solve real problems that real people face. and not just high-flying cryptographic traders.
- On the other hand, the use of the blockchain and similar technologies to help create “digital dollars” that can then be accurately tracked for their owners and what they buy and sell also has a number of results: from government surveillance and oversight which limit privacy. , to rob criminal companies of rising financial anonymity.
- Cryptography and the blockchain are really at the crossroads of wider use and acceptance;
- Some types of additional government regulation are inevitable;
- If regulators focus more on the appearance of the currency, then cryptography, its volatility, and its underlying blockchain technology are bound to have a bad name, and that’s not promising for the blockchain;
- If the government imposes some kind of disclosure and “reasonable” taxes on aspects of the currency and instead encourages new opportunities for the underlying blockchain technologies, then there may be a broader social benefit.
Finally, if you want to know more about the state of cryptography and the blockchain and future regulation, consider consulting the DC Blockchain Summit on May 24th. The event is organized by the Digital Chamber of Commerce and promises to bring together “world leaders.” pioneers across the blockchain ecosystem, policy makers, academics and others for critical debates on the issues that will define the future of our industry for decades to come. “
We invite you to join the MerITocracy American Innovation Forum on July 21 at the Marriott Marquis of Washington, DC, from 8:00 am to 6:00 pm, where we will welcome bipartisan congressional leaders, the Biden administration, and the U.S. technology industry to examine the most urgent problems that citizens face in our democracy and to draw creative solutions from the nexus of politics and technology.
Request your invitation today by sending an email to firstname.lastname@example.org.