US Treasury relies on Blockchain for internal processes

The US Treasury Department is completing a series of tests of a block-chain-based platform that monitors grant disbursements. Program manager Craig Fischer reveals that the agency is about to complete a proof-of-concept program to track the letter of credit for grant recipients.

The block-chain-based program tokenizes letters of credit that are transferred to grant recipients through peer-to-peer transactions, FCW reports. The process allows the Ministry of Finance to monitor the release of grant disbursements from the state budget to qualified recipients.

The tokens also store relevant data, including the grant amount and information about the grant recipient. In order to receive the grant money securely, recipients have an electronic wallet linked to a bank account.

Fischer, who describes his thoughts on Blockchain in an article by Nextgov, in which he reflects on the billions of dollars that governments and private companies have made with the “technology that underpins Bitcoin,” confirms that the new U.S. Treasury platform is a private system, as opposed to a decentralized open network that is open to public scrutiny

 

Fischer explains (freely translated):

This is not the Bitcoin network where everything is visible to everyone.

 

The development follows the comments of U.S. Treasury Secretary Steven Mnuchin, a vocal critic of Bitcoin and crypto-currencies, who has popularized blockchain technology by calling digital assets a “national security issue.

While speaking at a hearing of the House of Representatives’ Financial Services Committee last month, Mnukhin also rejected the idea of creating a central bank digital currency. 

 

He describes (freely translated):

Chairman Powell and I discussed this. We both agree that we don’t see any need for the Fed to issue a digital currency in the near future, in the next five years.

 

China ready to introduce 5G

Chinese telecommunications giant China Unicom is preparing for the arrival of the 5G era. According to the China News Network, CEO Chen Xiaotian hopes that the advent of Blockchain, Internet of Things (IOT) and other digital technologies will lead China to become a global leader in this field.

 

Xiaotian explains (freely translated):

The advent of the 5G era has brought many disruptive business opportunities in China’s supply chain.

 

Last year, Juzix reported that China Unicom’s IoT division and Wanxiang Blockchain announced their partnership by establishing the IoT and Blockchain Joint Innovation Center.

 

Xie Hongjun, the Chief Operating Officer of PlatON, a highly efficient, trusted cryptographic currency computer network, explained at the signing ceremony why Blockchain is an integral part of the 5G rollout (freely translated): 

“When we talk about 5G, we are talking about a new generation network that is capable of transferring data at a much higher speed and with less latency than a 4G network…”

 

The security problem [within] the connections is one of the most compelling reasons to use blockchain, since blockchain is designed as a basis for applications that involve transaction and interaction. Thus blockchain is the answer to the challenges of IoT.