Members of the Alabama Blockchain Study Commission agreed recently the state of Alabama should work toward “getting on the front end” of emerging technology in becoming among the most cryptocurrency and blockchain-friendly states in the nation.
“There are very few states right now that can put themselves out there as really crypto-business friendly, or at least open to working with crypto businesses and wanting to interact with them,” said Wade Preston, a member of the commission and leader at the Alabama Blockchain Alliance. “Crypto entrepreneurs have been seen as kind of pariahs for so long that getting on the front end of that would be a good leg up for the state, in my opinion.”
Blockchain technology refers to a type of digital database that can act as a secure public ledger that records and verifies all transactions, and is the foundation of which cryptocurrencies such as Bitcoin are built. While its roots can be traced back to the early 1980s, more advanced and decentralized forms of blockchain technology have only emerged within the past decade or so.
Research tool
The study commission was established last year by Sen. Greg Albritton, R-Range, as a tool to research ways the state could potentially utilize blockchain technology to improve government efficiency, as well as how it should be regulated. Some states have already implemented blockchain technology for government operations, with California digitizing its 42 million car titles last year, though states have generally been slow to adopt regulation around the industry.
That could change soon, however, with the second Donald Trump administration, with several key cabinet picks, including Paul Atkins as SEC chair and David Sacks as AI and Crypto Czar, being advocates for regulation favorable to cryptocurrency. Trump has also pledged to enact executive orders to benefit the cryptocurrency sector.
Many bitcoin enthusiasts and investors are quick to say government-backed currencies are prone to devaluation and increased government buy-ins will stabilize future price swings, giving them more legitimacy and boosting already rising prices.
But the risks are significant. Critics say crypto investments are highly speculative, with so much unknown about projecting future returns. They warn that investors should be prepared to lose money.
EDITOR’S NOTE — This story was written by Alexander Willis and originally published by Alabama Daily News. It is reprinted with permission.
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