The calls to use blockchain in COVID-19 relief package passed by the Congress are rising again. Now, 11 Congressmen have appealed to the U.S. Treasury Department to employ innovative technologies, including blockchain, to disburse funds under the newly launched COVID-19 stimulus package. Earlier too, lawmakers talked about how blockchain can help streamline monetary transactions and supplies in the COVID-19 relief efforts.
The CARES Act enacted to help revive the economy and help distressed U.S. citizens is the umbrella program providing Coronavirus economic relief. Eleven members of the U.S. Congress have written a letter to Treasury Secretary Steven Mnuchin mentioning the role blockchain and distributed ledger technology can play in stimulus distribution.
More lawmakers now support using blockchain in COVID-19
In the letter spearheaded by Congressman Darren Soto, the group has elaborated on the benefits offered by blockchain technology in the transparent and effective money transfers, especially the $1,200 stimulus checks. It has been pointed out that liquidity in funds can get a much-needed boost by using these innovative technologies.
Lawmakers echo the sentiment that using blockchain in COVID-19 relief will ensure quick distribution of funds, which can play a crucial role in providing fast, economic assistance to Americans. They agree with Treasury’s stance that preference must be given to small businesses and families.
Lawmakers are warming up to DLT and blockchain
The letter states that the pandemic has had adverse effects on the economy, and through this letter, they wish to augment the administration’s economic relief efforts so that small businesses and families can quickly get back on track. The letter also lays emphasis on the health and safety aspects of the economic relief package.
Through the letter, the various Congressmen have advised ‘additional steps’ that can help increase the effectiveness of the Treasury’s efforts. They have strongly advocated the use of blockchain in COVID-19 relief package. They also add that such a mechanism will also ensure that the technological prowess of American society is further strengthened. They also discuss how China has deployed blockchain networks to boost its financial infrastructure.
Why use blockchain in COVID-19 relief?
Congressman Soto also heads the ‘Congressional Blockchain Caucus.’ He said that he had consulted caucus members including, developers and entrepreneurs while drafting the letter. He emphasizes the use of secure DLT tools over conventional financial channels to streamline fund distribution.
Moreover, by employing blockchain in COVID-19 relief, data management and tracking can be refined further. He also mentions using artificial intelligence to manage distribution and supply chain networks.