So far, we thought that governments are mainly interested in regulating bitcoin use, yet it seems that this is not the case, as there are numerous legislative drafts meant to regulate the blockchain network.
With this in mind, certain reports indicate that not long ago, the state of Illinois decided to take its first step in a multi-agency plan meant to integrate the integration of blockchain network into government operations of all kind. However, to be able to do this, legislative framework outlining the uses has to be implemented.
Based on this, the Illinois Department of Financial and Professional Regulation, also known as the IDFPR, recently announced that it is planning to release the Digital Currency Regulatory Guidance on the blockchain network and virtual currencies to the public, for comments.
It is worth pointing out however, that the initiative is not meant to restrict the use of digital currencies and the blockchain network, but rather to propose projects and laws meant to simplify the implementation of the technology in government operations.
In the statement, it was mentioned that: "We plan to study digital currencies carefully as the technology develops, however, at this point in time digital currencies like Bitcoin, given their low transaction volume and relatively niche use, are best viewed as a speculative investment or possibly even a new type of asset class, not as money."
In a recent press release, it was stated that: “As innovative payment technologies grow in popularity, it is vital that we provide a succinct regulatory framework that gives businesses operating in this space necessary clarity”.
However, by combining the Digital Currency Regulatory Guidance paper with the press release, it can easily be determined that the state believes that blockchain innovation should actually stay away from FinTech concepts, which is quite interesting. At the same time, they are indeed, looking for ways to innovate distributed ledgers, as the state of Illinois, is requesting numerous proposals related to the creation of identity, ownership registries, attestation, reporting ledgers, compliance and more.
They also believe that at this moment in time, 'the best way to develop a technology is to put it into practice'.
Based on everything that has been outlined so far, the state of Illinois is planning to introduce blockchain into its government operations, but the community isn't yet sure whether bitcoin and blockchain regulation will help in this regard. While data protection laws should have their place, people are still debating on whether this is a good idea at all.
What do you personally think about the legislative framework that the state of Illinois is proposing for the adoption of the blockchain network? Let us know your thoughts in the comment section below.