I just came to know that Singapore’s central bank sent a payment to Canada using blockchain technology last week. This got me thinking about how major governments are missing this chance when it comes to inter-departmental payments.
I am a big advocate of using blockchain in payments. In fact, it was one of my first recommendations when I was consulting for a join US-Japanese project on Blockchain technology. OiX has been at the forefront of getting things moving in government towards a more blockchain based economy. We are engaged with 2 national governments and at least 5 regional governments on the adoption of blockchain technology in government transactions.
My experience tells me that the one thing that makes every non-technical person (which means most of the government leaders as well as bureaucrats), tend to think of bitcoin and other such illegal currencies. One question that I am always asked at the beginning of such a conversation is - "You want government transactions to be made in an illegal currency like bitcoin?" Well, goes to show how tough it is to sell the idea.
I often end up talking about the trustless environment when we get beyond the Bitcoin objection and that is tough to explain too. What I tell them eventually is about counterparty risk – when you send money via an intermediary to buy something, you can‘t be certain that the intermediary will deliver the funds on time, or that their confirmation might hold up your end of the bargain.
I want to propose a blockchain based solution to mitigate this risk. This, however, is not the only reason I do so. A large part of Human population goes about their daily life without knowing how few powers actually control the financial world. If they knew that were companies with larger monopoly than Microsoft and Google controlling their money, the chance of blockchain being introduced sooner than later would be a truth.