June 6, 2023

Moody's: "Blockchain will help municipalities save money"

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1 min.

Moody's: "Blockchain will help municipalities save money"

Analysts at the rating agency Moody's believe thatthat the blockchain can bring significant benefits to local, local authorities - it can be used for issuing bonds and a wide variety of budget operations.

According to Moody’s, thanks to blockchainUS municipalities can cut costs by 35%. True, the use of technology leads to the emergence of new risks - both from cybercriminals and from regulators, whose position in relation to cryptocurrencies and blockchain is still not very clear.

Blockchain adoption for issuing bonds onmunicipal level may take some time. Although, according to the agency's specialists, there are already several projects on the use of distributed ledger technology:

“Several municipalities held a saledebt obligations using the blockchain, however, traditional transaction support was also carried out in parallel. This is the first step towards the use of blockchain in the process of issuing municipal securities. Blockchain is good for the inability to change records, as well as transparency and ease of auditing. This makes it possible to optimize the work of municipalities and in some cases even conduct voting.”

Moody's reported that the recent decoupling
stablecoin USDC from the dollar can reduce confidence in the entire field of stable cryptocurrencies.