(The Center Square) – Federal and state officers wish to take a deeper dive into the way forward for digital currencies and the spine of what makes them work.
Digital currencies like Bitcoin work on what’s known as the blockchain. That’s a distributed digital ledger U.S. Rep. Bill Foster, D-Naperville, says is non-falsifiable.
“Something that you cannot go and make a counterfeit copy of something that’s already been published on the blockchain,” Foster stated. “And so that will prevent a lot of document fraud.”
With China’s central financial institution its personal digital foreign money, Foster is pushing for Congress to research making a digital greenback in cooperation with the Federal Reserve central financial institution.
“The United States is playing catch-up to the rest of the world when it comes to digital currency, and if we’re going to protect the U.S. dollar’s status as the world’s reserve currency, we need to make development of secure and effective digital currency a priority,” Foster stated in a press release.
In an interview, he stated decentralized digital currencies like Bitcoin are facilitating illicit actions.
“One of the border patrol agents told me that most of the payments made for human trafficking are now being made with Bitcoin, simply because it was not legally traceable,” Foster stated.
Michael Busch, president and CEO of Burling Bank in Chicago, stated what he’s seen with digital currencies, the ledger is clear and accountable. He additionally famous the U.S. greenback is getting used for nefarious functions.
“While we always have to be wary of bad actors, we can’t let those concerns deter us from providing safe and sound products and services to compliant businesses,” Busch stated.
Busch advocates for insurance policies to foster the expansion of blockchain know-how in Illinois.
Illinois lawmakers final month heard from Illinois Department of Financial and Professional Regulation’s Chasse Rehwinkel about how such blockchain know-how continues to be adopted by different states.
“Blockchain technology is not just being applied to financial institutions, but also it’s being looked at for government, healthcare, transpiration, different logistics issues, retail, travel and many other industries,” Rehwinkel stated.
IDFPR produced a report on the finish of final yr with varied suggestions Illinois might implement to foster blockchain know-how and digital currencies.
“There is no general consensus among domestic regulatory bodies at either the state or federal level,” based on the stories. “However, certain states are making inroads in how to regulate this industry. Allowing banks and financial institutions to act as legal custodians for crypto-asset clients seems to be the regulatory path that both industry advocates and regulators want to pursue.”