The Blockchain which is best known for the "guts" of how bitcoin transactions are verified, recorded and transacted, has uses beyond bitcoin. This decentralized system can be used to verify and process many types of transactions where two or more parties want verification of authenticity and to get information or transfer information or value. IBM and others have been exploring this. The Federal Reserve and others held a conference on the topic in June (see CoinDesk story).
On September 26, the bipartisan Blockchain Caucus was launched led by Congressmen Mick Mulvaney (R-SC) and Jared Polis (D-CO). Per their 9/27 press release:
“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney said in a statement.
Blockchain is a vast public ledger that records every transaction of the digital currency Bitcoin and stores it in a global network so it can’t be interfered with. It’s constantly growing as more blocks with new recordings are added to it."
The press release doesn't mention tax, but tax is very relevant to this topic for a few reasons, including:
- There are tax rules and issues in transacting business via a blockchain including sourcing and identifying the nature of the transactions.
- Tax administration and compliance can be aided by this new technology.
- Security is crucial so people are willing to do more types of transactions via this new technology.
What do you think?
For more on virtual currency and blockchain technology, visit my website on the topics.
1 comment:
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