The ITIF, or the Information Technology & Innovation Foundation, recently shared with policymakers its proposed guidelines for regulating blockchain technology.
The foundation is an independent nonprofit association that assists lawmakers by providing analysis, data, and recommendations for managing new technology. In its latest guide, the ITIF included a range of proposals that will help improve how blockchain is regulated. The suggestions are reportedly based on ideas like adoption in the public sector and tech neutrality.
The new guidelines also foresee that blockchain technology will become a vital aspect in major applications like smart contracts, shared data services, cryptocurrencies, authenticity tracking, decentralized marketplaces, and applications involving digital identity.
The ITIF also mentioned that uninformed policymaking hinders hamstring development. Blockchain deployment in particular can be affected by regulations on data use. The guide used as an example the EU’s policies which are inconsistent with blockchain’s tamper-proof capacity.
Since blockchains are peer-to-peer systems with no intermediaries, it’s hard to edit or change data retroactively. While it’s possible that the technology could be exploited to store prohibited data, the ITIF emphasized that the public blockchains currently in use are not the best option for storing or sharing pirated or illegal content.
The ITIF generally wants governments to put more effort in supporting legitimate and much needed innovation and adoption of improved technology in blockchain. The institution is pushing for proper regulations that don’t limit blockchain-centered applications.
The group also warned that measures that are reflexive risk the outright shutting down of blockchain development. There are already instances of this happening. Just this week, India is said to be reviewing a bill that would result in a blanket ban of cryptocurrency.