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:
- 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.