Let's be frank. When I found out that Alabama punted on those crypto and blockchain bills, my kneejerk response was to let out a disappointed breath. Not of relief, but of frustration. If it did, it would change the transparency game for government at all levels. Alabama just shut that door in its face.
Sure, I understand the hesitation. Change is scary, especially when that change is as complex and nuanced as blockchain technology. Is fear of the unknown a sufficient excuse to overlook a transportation game-changer? I think not.
Blockchain: More Than Just Bitcoin
If you’re still imagining underground e-commerce transactions and jumping cryptocurrency price spikes when someone mentions “blockchain,” don’t be confused. In its most basic form, blockchain is just a decentralized, immutable record-keeping system. Consider it a digital version of the neighborhood children’s record book, but one that’s distributed over thousands of different computers. Each of these transactions is then bundled together in a single “block.” Once we write that block to the “chain,” it’s impossible to go back and modify it. This makes it incredibly secure and transparent.
Now picture HB484’s reality. This bill, HB 493, would have required the Alabama Comptroller to publish every single public expenditure over $1,000 on a state sponsored public blockchain by 2030.
Think about it. Each and every expenditure, open and transparent for all to view. No more wasted contracts, no more backroom deals, no more wondering where your tax dollars are really going. That's the power of blockchain. It’s just a good common sense way of holding our elected officials accountable and restoring the public trust in government.
That’s the odd thing, can we actually contrast it to the current state that public expenditures are currently accessible with the Department of Finance.
The Alabama Department of Finance already produces these data as public-facing financial reports and a searchable online checkbook. Okay, fair enough. Here's the thing: those systems are centralized and controlled by a single entity. Blockchain provides an unprecedented degree of transparency, security and immutability, making today’s systems unreproducible. It’s similar to the difference between taking someone else’s word for a book’s accuracy and immersing yourself in a book where you can verify every statement yourself. The second route provides certainty and assurance.
Redundancy? Or Radical Transparency?
I understand Rep. Andy Whitt's apprehension over the volatility of cryptocurrency. His concerns particularly apply to HB482, a bill that would have allowed the state treasurer to invest in crypto. Bitcoin's price swings can be stomach-churning. Painting all of blockchain with the same brush is a grave error.
HB484 isn't about investing in volatile assets. It's about using blockchain to improve transparency. First, it’s about creating a more intuitive citizen dashboard — one where the public could easily see how their tax dollars are being spent. It’s about cultivating a state government that is more accountable and trustworthy.
Is it redundant? Maybe in the short term. However, in the long run, blockchain has the potential to make government processes more efficient, save taxpayer dollars and perhaps most crucially help restore trust in government.
Transparency International consistently ranks countries with higher levels of transparency as having lower levels of corruption. Blockchain is one useful tool that can help us take a step in that direction.
And how can we overlook Rep. Shaw’s brilliant recommendation to put all public notices on the blockchain. The old system of forcing folks to check for newspaper ads is an outdated, expensive waste of time. A state-managed blockchain could provide a more accessible and cost-effective way to inform the public about important meetings and contracts.
Learning From Global Blockchain Leaders
The reality is, the world isn’t waiting for Alabama to get on the same page. Estonia and Switzerland are just two examples of nations where blockchain is already streamlining government services, ranging from land registry to voting. They aren’t saying one thing and doing another—they’re putting their money where their mouth is.
- Estonia: Uses blockchain for e-residency, digital identity, and data security.
- Switzerland: Piloting blockchain for voting and land registry.
- Dubai: Aims to be the first blockchain-powered government by 2020 (though progress is ongoing).
These countries understand that blockchain holds the promise of developing more efficient, transparent, and therefore more trustworthy governments. So they don’t perceive it as a threat, they see it as an opportunity.
Think about the rise of the internet. In the early days, most businesses were scared to adopt it. They worried about security, cost, and complexity. Those who had the fortitude to jump in made out like bandits. Blockchain is at a similar inflection point. Now is the time for innovation, not trepidation.
Alabama doesn't need to reinvent the wheel. Unlike those other countries, it can learn from the successes (and failures) of the others. To begin with, it can begin on a small scale—on pilot projects that show what the new technology could deliver. Yet, when it comes to realization, it can directly engage with specialists to confront the technical issues and make sure that the tech is installed curbingly.
The committee's decision to carry over HB482 and HB484 for further consideration isn't a complete loss. It’s a chance to better educate ourselves about blockchain, hear the fears, and craft a detailed plan for developing a thoughtful approach to implementation.
Don't let this opportunity slip away, Alabama. The future of government transparency and democracy might very well depend on it. So let’s move beyond the door to blockchain and discover what could be possible with the technology. Contact your Members of Congress and thank them for demonstrating support to pursue this valuable technology. Together we can create a more open, honest, and accountable Alabama!
