US Defense Bill Could Give Big Boost to Blockchain

An obscure provision tucked into a defense spending bill could serve as a springboard for blockchain adoption across U.S. government agencies.

Part of a larger bill called the National Defense Authorization Act (NDAA), the Modernizing Government Technology Act (MGT) will allow the public sector to redirect cost savings (which normally must be returned to the Treasury Department) into internal working capital funds that can be used to upgrade their IT systems.

It authorizes agencies to use the working capital funds for modernization projects that fall into one of three buckets: cybersecurity, migrating legacy systems to the cloud and “other innovative platforms and technologies.”

As such, while blockchain is not explicitly mentioned in MGT’s text, it fits into the letter of the law’s parameters and objectives to advance the technology beyond the proof-of-concept stage at the agency level.

Based on what U.S. government officials have said in the past, Trey Hodgkins, senior vice president of public sector at the Information Technology Industry Council in Washington, D.C., told CoinDesk:

“Blockchain was clearly one of the technological capabilities that Congress meant for agencies to look at, and what they were trying to do was create dollars with some flexibility to them so that agencies would have their own discretion on what they invest in.”

Far from being held up in legislation, however, the MGT could soon have an impact. The NDAA has been passed by both the House of Representatives and Senate, and is awaiting President Donald Trump’s signature, at which point it would become law…

Read Full: US Defense Bill Could Give Big Boost to Blockchain – CoinDesk