Blockchain is gaining notice from at to the lowest degree i fellow member of the U.S.Congress, according toTechTarget. U.S. of America Rep. David Schweikert, R-Ariz., called on attendees at the DC Blockchain Summit inwards Washington, D.C. to prepare lawmakers well-nigh the technology’s benefits in addition to then that lawmakers tin address it inwards a agency that benefits the economic scheme every bit opposed to excessive regulation.
Schweikert, who serves on the House of Representatives’ Financial Services Committee, noted banks are scrambling to ensure blockchain applied scientific discipline doesn’t disintermediate them. He said he has followed cryptocurrencies for a issue of years.
Congress Needs Education
Only half dozen or 7 fellow Congress members empathise the basic mechanics of the distributed ledger, Schweikert said. When The Economist published a comprehend even out well-nigh blockchain applied scientific discipline terminal October, the Financial Services Committee bought dozens of copies to distribute to members of Congress to aid convey them upward to speed.
Banks in addition to other fiscal services companies are scared that blockchain applied scientific discipline volition pose them out of business, he said. He wondered if the applied scientific discipline poses a disruptive threat to those inwards the money transfer business, the credit menu infrastructure business, in addition to the onetime processing systems.
Blockchain’s Potential
Schweikert recognized the benefits blockchain applied scientific discipline tin provide. He said it has the potential to enable peer-to-peer value transfer betwixt people — without requiring a authorities or banking company to execute the transaction. He said this is a major threat to regional in addition to community banks. This threat is specially pronounced considering in that location are millions worldwide who upward until similar a shot get got been “unbankable” — lacking access to a banking company describe of piece of job concern human relationship in addition to hence can’t participate inwards a credit-based economy.
With blockchain technology, a cellular telephone in addition to cryptocurrency, the unbankable tin bring together the economic scheme without always doing describe of piece of job concern amongst a bank. This marketplace represents a huge lost chance to fiscal services companies.
Financial Services Are At Risk
Banks aren’t the entirely businesses facing disintermediation, he said. Any companionship acting every bit an intermediary inwards fiscal transactions is at risk. “Say you lot desire to sell stock,” he said. “Could I purchase it straight from you lot in addition to never get got to get got it acre inwards some other platform?”
While banks’ biggest problems i time revolved some regulatory compliance requirements, the biggest threats they similar a shot appear upward are cryptocurrencies.
Schweikert called on his audience, which included many blockchain applied scientific discipline advocates, to get got action. He implored them that if they get got relationships amongst “those of my kind, those of us who larn elected in addition to intend nosotros already know everything” to prepare them on the benefits earlier the “control freaks” discovery a agency to destroy the positive things blockchain could practice for the economic scheme in addition to for the world.