Proudly Serving Iowa

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Iowa Digital Currency Since 2022

Mobilize and Build Tomorrows Decentralized Financial System

Let's jump into understanding what Blockchain is for starts.  The underlying technology that allows the Bitcoin network for instance to operate is known as blockchain - an area Congress has been paying attention to for its potential impacts as well.  The Blockchain Innovation Act (H.R.  3639) is sponsored by Congressman Brett Guthrie (R-KY) and would direct the Secretary of Commerce to conduct a study and submit to Congress a report on the state of blockchain technology and its use in consumer protection.

Iowa Customers

Some information I know about Iowa is I believe the state was admitted or ratified to the United States around or about 'December 28, 1846'.  Iowa is located around latitude '42.032974' and longitude of '-93.581543' and has a population of roughly '3,190,369 million'.  If I remember correctly the capital is 'Des Moines' and the largest city is 'Des Moines'. 

The Blockchain Promotion Act of 2021 (S.  1869) is a bipartisan measure that would establish a working group to recommend to Congress a definition of blockchain technology, as sponsored by Senator Todd Young (R-SD) and Senator Edward Markey (D-MA).  There is a companion House bill (H.R.  3612) by Representative Doris Matsui (D-CA) that is co-sponsored by Representative Brett Guthrie (R-KY)

The Blockchain Technology Coordination Act of 2021 (H.R.  3543) was introduced by Soto to establish a Blockchain Center of Excellence within the U.S.  Department of Commerce.  The office would oversee all non-defense-related deployment and activities related to blockchain technology within the federal government.

Emmer introduced the Blockchain Regulatory Certainty Act (H.R.  5045) with Soto that aims to provide clarity for blockchain innovators by offering a safe harbor for licensing and registration for certain non-controlling blockchain developers and providers of blockchain services.

Finally, the RESCUE Act for Black and community banks (H.R.  154) sponsored by Representative Bobby Rush (D-IL) calls for a Blockchain study by the Comptroller General of the United States as to whether blockchain technology could be used to increase investment by lower-income individuals in start- ups and other crowd-funded companies.

Legislation

Assuming everyone knows what Digital Currency is let's discuss the legislation which has come about around it.  As 2021 came to a close, the 117th Congress has introduced 35 bills in 2021 focused on cryptocurrency and blockchain policy.  As the Infrastructure Investment and Jobs Act (H.R.  3684) made headlines with language on crypto tax reporting that is now law, the surprising reaction from the crypto lobby showed that this industry was likely here to stay. Congressional Members introduced three different types of bills focused on (1) cryptocurrency regulation, (2) applications of blockchain technology, and (3) central bank digital currency (CBDC).

If at any point you decide to reach to me just know the area codes I am familiar with for Iowa are '319, 515, 563, 641, 712'.  For Digital Currency Decentralized assistance you will find my rates very reasonable for Iowa.  Now just keep in mind my time zone is 'Eastern Standard Time (EST)' and I know the time zones in Iowa are 'Central Standard Time (CST)' in case you wish to call me.  Anyway let me continue.

The first set of bills mainly focus on how regulatory agencies such as the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) will regulate crypto and blockchain tokens.  The blockchain and distributed ledger technology bills focus on ways to promote the technology underlying crypto within the U.S.  Government for broader use in other sectors of the economy.  Finally, the new concept of CBDCs continues to be explored as well, as some policymakers perceive a risk to the U.S.  dollar's position as the world's reserve currency based on technological innovations such as stablecoins.

All three of these areas - the regulation of cryptocurrencies, the blockchain technology that offers possibilities of a distributed ledger for every sector of the economy and other use cases, and the consideration of whether the United States needs to digitally produce its own CBDC - are equally important.  However, the one area that has seen the most attention - and continues to see hearings on Capitol Hill - relates to the way cryptocurrencies should be regulated and whether legislation is needed. 

You know, I don't make it out to Iowa much but I would like to see the 'Eastern Goldfinch' state bird.  I am a little familiar with the Iowa 'Wild rose' state flower as well.  However, I do not know much about Iowa's state tree the 'Oak'.  Fishing is fun to me perhaps I would like reeling in the Iowa 'No Official Fish' state fish.  Anyway, sorry I went off topic.  Let me continue.

Central Bank Digital Currency

What exactly is a Central Bank Digital Currency (CBDC)?  A CBDC is virtual money backed and issued by a central bank.  As cryptocurrencies and stablecoins have become more popular, the world's central banks have realized that they need to provide an alternative - or let the future of money pass them by.

Countries launching Digital Currencies

1. 105 countries, representing over 95 percent of global GDP, are exploring a CBDC.  In May 2020, only 35 countries were considering a CBDC.  A new high of 50 countries are in an advanced phase of exploration (development, pilot, or launch).
2. 10 countries have fully launched a digital currency, with China's pilot set to expand in 2023.  Jamaica is the latest country to launch a CBDC, the JAM-DEX.  Nigeria, Africa's largest economy, launched its CBDC in October 2021.
3. Many countries are exploring alternative international payment systems.  The trend is likely to accelerate following financial sanctions on Russia.  There are 9 crossborder wholesale (bank-to-bank) CBDC tests and 3 cross-border retail projects.
4. Of the G7 economies, the US and UK are the furthest behind on CBDC development.  The European Central Bank has signaled it will aim to deliver a digital euro by the middle of the decade.
5. 19 of the G20 countries are exploring a CBDC, with 16 already in development or pilot stage.  This includes South Korea, Japan, India, and Russia.  Each has made significant progress over past six months.
6. The financial system may face a significant interoperability problem in the near future.  The proliferation of different CBDC models is creating new urgency for international standard setting.