Blockchain technologies could mitigate pandemic, say Emmer, Blockchain Caucus members

Blockchain technology could help the nation better respond to and mitigate the COVID-19 pandemic, according to U.S. Rep. Tom Emmer (R-MN) and members of the bipartisan congressional Blockchain Caucus.  

“This outbreak is an opportunity for us to retool and focus on building stronger processes to better protect the American people from the challenges we face,” said Rep. Emmer, co-chair of the caucus along with U.S. Rep. Bill Foster (D-IL).

Blockchain technology is a structure that stores public transactional records, also known as the block, in several databases known as the chain. The blockchain system records information in a way that makes it difficult or impossible to change, hack or cheat the system.

“Federal regulators should be considering new and innovative technologies to respond to this outbreak and reduce its spread,” Rep. Emmer said. “This year, we’ve faced unprecedented challenges. Federal regulators must be willing to shed the bureaucracy and implement new solutions.” 

Blockchain technology could be used to authenticate a person’s identity to receive necessary funding or supplies; to secure America’s supply chains; to help identify inventories of supplies and where they originate; and to host registries of essential medical professionals needed during crises, according to a Sept. 2 letter Rep. Emmer and his colleagues sent to President Donald Trump and seven federal agencies.

The lawmakers urged the federal government to consider these various implementations of blockchain technology as a resource to combat the effects of the coronavirus. “The United States must establish and maintain a digital infrastructure that is reliable, accurate, flexible, and secure,” they wrote. “We strongly encourage you to review new innovations and methods of deploying government services. Blockchain stands to be a major asset in that pursuit.”

Rep. Emmer and his colleagues also suggested that the government convene leaders in both the private and public sectors to meet and develop a coordinated strategy to utilize blockchain technology to help facilitate relief to those impacted by the pandemic.

The letter follows two related bipartisan bills authored by Rep. Emmer. The Blockchain Regulatory Certainty Act, H.R. 528, which Rep. Emmer sponsored in January 2019 with bill cosponsor U.S. Rep. Darren Soto (D-FL) would exempt blockchain developers and providers of blockchain services that do not take control of consumer funds from certain financial reporting and licensing requirements, according to the congressional record bill summary. The bill remains under consideration in several committees in the U.S. House of Representatives.

In addition, Rep. Emmer in May 2019 introduced the Advancing Innovation to Assist Law Enforcement Act, H.R. 2613, with U.S. Reps. Anthony Gonzalez (R-OH) and Ben McAdams (D-UT). That bill would require the Financial Crimes Enforcement Network to report on emerging financial technologies — including artificial intelligence, digital identity and blockchain technologies — and their use in law enforcement. The House in September 2019 passed the bill by voice vote and referred it to the U.S. Senate, which sent it to the U.S. Senate Banking, Housing, and Urban Affairs Committee for consideration.