US Government: New Bill Covers the Way of Adopting the Blockchain

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Approval of the Defense Spending Bill, known as the National Defense Authorization Act (NDAA), may lead to the mainstream implementation of Blockchain technology by the U.S. government agencies. Because Bill has a provision of the Modernist Government Technology (MGT) that utilizes modernization of its IT system to redirect their cost savings to internal operating capital funds.

According to Trey Hodgkins, Information Technology Industry Council Senior Vice President of Public Sector,  the US Congress needs many agencies to have their own discretion on how to invest their savings.

“Blockchain was clearly one of the technological capabilities that Congress meant for agencies to look at, and what they were trying to do was create dollars with some flexibility to them so that agencies would have their own discretion on what they invest in.”

Brief details of the bill and the opinions of some industry players

Under the MGT provision, government agencies have been authorized to spend their operational capital for falling modernization initiatives in three categories, such as cloud services, cybersecurity and other innovative and disruptive technologies and platforms that migrate heritage systems.

Although it has not been transferred to the bill, Blockchain technology qualifies in a potential way to set funds for greater progress beyond the concept level at the agency level.

According to Hybrid Blockchain database provider ChromaWay’s Todd Miller, they are excited regarding the MGT Act due to its promotion of new technologies such as smart contracts and Blockchain.

He said:

“We are excited about the MGT Act because it provides incentives to federal agencies to move away from high-cost, low performing legacy systems toward new technologies, like Blockchain and smart contracts.”

The NDAA has already been approved by the House of Representatives and Senate by the end of November 2017. Finally, U.S. Act is waiting for the signature of President Donald Trump.

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