Recently, the US Fiscal Service Bureau announced the launch of two innovative blockchain-based projects, which will allow the government to evaluate and adopt this developing technology.
The two projects based on blockchain that announced la Office of the Tax Service, attached to the United States Department of the Treasury, were designed with the intention of simplifying the financial processes carried out by the government through technological innovation. The simplification of these processes leads to the saving of millions of dollars a year that are used to cover the costs of financial management, and contributes to guaranteeing the transparency and reliability of the processes. As indicated in the press release, both projects will allow the federal government to evaluate the efficient operation and management of its businesses “by strategically taking advantage of emerging technology.”
The U.S. Fiscal Service's foray continues a course the agency took in 2017, when it announced it was hiring a technology services company to build and develop a digital system that would have the ability to track and manage physical assets, such as computers, cell phones, and other similar products.
It may interest you: OCC: US regulator authorizes banks to hold reserves in stablecoins
Digital efficiency in the business sector
The first project, called Digital End-to-End Efficiency (DEEE), is focused on the digitalization and automation of complete business processes, rather than focusing solely on the implementation of technologies such as Robotic Process Automation (RPA) or Artificial Intelligence (AI). DEEE will help the entity promote a global and holistic vision of the entire business digitalization and automation process. In relation to this, Cindy Good, Manager of the Tax Services Program stated that:
“DEEE moves away from the current trend of automating individual tasks with RPA and looks at the entire process. We want to identify improvements using a set of automation options, if necessary, to support a smooth process.”.
This project is intended to serve as a guide for government and federal entities to directly engage with the digital transformation of their business processes.
Blockchain in the payment of subsidies
Likewise, the second project presented by the Tax Service Office, Blockchain for Grant Payments, is a continuation of the office’s innovations in 2017. In Good’s words, “The second project is a continuation of an effort begun in 2017 that focused on how grant recipients could use blockchain technology to tokenize—that is, digitally represent, transfer, and redeem—grant payments.”
Through this project, the entity seeks to assess the functional and legal implications of the integration and use of blockchain technology in grant payments. The project will be implemented for a period of 6 months, which the entity estimates as sufficient for the development of the program and the evaluation of the results.
Similarly, the Fiscal Service Office noted that during this period, blockchain technology will reduce operating costs and the labor required for the processes, while improving the entity's internal controls and levels of reliability and transparency. In this regard, the Manager of the Fiscal Service Supervision Program, Craig Fischer, also highlighted that by tokenizing grant award information and combining it with grant payment information on a blockchain, the entity will achieve a new level of transparency that was almost impossible to achieve with traditional instruments, without the need for significant, burdensome, cumbersome and annoying reporting.
Continue reading: The United States approves new regulatory regime for payments and cryptocurrency companies
