Berkeley, California, may be the first municipality that would use blockchain technology to raise funds for community projects. As reported by Bloomberg, the City Council asked the city manager to evaluate the benefits of selling bonds using distributed ledger technology.
California and Blockchain Technology to Raise Funds
The initiative has been proposed by the vice mayor Ben Barlett. He aims to boost community participation by offering municipal debt for less than $5,000. Blockchain will be used to power these bonds, allowing them to be recorded and transacted easily and securely.
At the moment, some members of the council said that they need to know more about the project before giving their vote.
“If we’re doing mini muni bonds, which I think is a great idea, isn’t blockchain overkill?” commented Councilwoman Susan Wengraf.
Blockchain technology is being used in many industries and all over the world. We can mention that companies like APL or Accenture are already benefiting from it. Moreover, governments like the Dutch or Chilean ones are also implementing blockchain solutions to improve services and products.
At CryptStorm we informed that some car producers are working and investing in distributed ledger technology to take the automotive industry to the next level. Among the participating brands we can mention BMW, General Motors, Ford, and Renault.
This is the first time that a government is trying to issue bonds backed by blockchain technology. In general, private enterprises have been using blockchain for financial activities, but until now, no government tried it before.