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

Article Reading Time:
1 min.

Rating agency analystsMoody's believes that blockchain can bring significant benefits to local governments - it can be used for issuing bonds and a variety of budgetary transactions.

According to Moody's, thanks to blockchainAmerican municipalities can reduce 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.

Adopting blockchain for issuing bonds onmunicipal level may take some time. Although, as the agency’s specialists note, there are already several projects using distributed registry technology:

“Several municipalities have carried out salesdebt obligations using blockchain, but at the same time they also carried out traditional transaction support. This is the first step towards using blockchain in the municipal securities issuance process. Blockchain is good because it is impossible to change records, as well as being transparent and easy to audit. This allows us 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 exchange rate can reduce confidence in the entire field of stable cryptocurrencies.