US Defense Bill Can Give Boost to Blockchain

US defense spending bill can give a big push for blockchain adoption across U.S. government agencies
23 November 2017   578

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. This is reported by the CoinDesk.

Projects that fall into one of three buckets: cybersecurity, migrating legacy systems to the cloud and "other innovative platforms and technologies" will be able to use the working capital funds of agencies for modernization. 

Blockchain is not explicitly mentioned in MGT's text. But it fits greatly law's parameters and objectives to advance the technology beyond the proof-of-concept stage at the agency level.

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.

Trey Hodgkins

Senior vice president of public sector, Information Technology Industry Council in Washington, D.C.

A lot of companies echoed Hodgkins' optimism that the act could provide a way for enterprise blockchain services on the governmental level.

We are excited about the MGT Act because it provides incentives to federal agencies to move away from high-cost, low performing legacy systems toward new technologies, like blockchain and smart contracts. 

Todd Miller

U.S. markets lead, ChromaWay

But even if MGT provides a window of opportunity for blockchain within government "modernization" projects, the technology must demonstrate it has utility at an enterprise level before agencies can fully embrace it.

Government agencies are, after all, still grappling with the cybersecurity risks associated with blockchain.

Australian Company to Issues Crypto Backed Loans

In case of default, financial company named Helio may sell cryptocurrency to cover losses
10 December 2018   89

Helio from Melbourne began issuing loans secured by cryptocurrencies, reports.

The service allows Helio clients to borrow from 1000 Australian dollars ($ 720) on the security of cryptocurrency assets. At the moment, the company accepts Bitcoin, Ether, Litecoin and Ripple.

Helio client crypto assets are stored in a secure wallet, company representatives say. In case of default, the company may sell cryptocurrency to cover losses.

Helio has a credit license (ACL) issued by the Australian Securities and Investments Commission (ASIC). As stated by the company's founder, John O’Shy, Helio was the first licensed organization in Australia to launch this service. According to him, the country has a developed cryptocurrency market, however, suppliers who want to provide loans secured by digital assets are not enough.

In June, the Japanese corporation Abic Corporation began to issue loans secured with Bitcoin