The cryptocurrency industry has carried most of the plaudits over the last couple of years with the likes of Bitcoin, Ether, Ripple and Bitcoin Cash dominating headlines in the global financial markets.
There have been debates regarding the acceptance of cryptocurrencies in governments with the potential impact of imposing government regulations repeatedly being flagged as a likely drawback to the expansive growth of the crypto market witnessed over the last few years.
Further, lingering questions about criminal activities in the cryptocurrency industry where some players launch projects to defraud unsuspecting investors have also created a cloud of doubt. As such, the chances of cryptocurrencies worming their way into the confines of the government framework are still deemed a far-fetched dream in some countries.
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Some players in the industry have also been accused of getting involved in the market in a bid to gain access to undetectable channels of money laundering, which continues to complicate matters for digital currencies ever becoming a mainstay within government systems. However, the blockchain, which is the underlying technology behind bitcoin and other cryptocurrencies is finding a warmer embrace in government institutions and this has triggered the interest of top technology companies.
Just this July, International Business Machines Corp. (IBM) won AUD $1 billion government contract for the development of blockchain and other digital initiatives in Australia. The contract will see IBM engage in the development of quantum computing, blockchain and artificial intelligence projects in the country over a 5-year period, which is expected to strengthen Australia’s position in the digital transformation and automation market.
The disruptive force of the distributed ledger technology is finally finding a foothold in the more centralized public sector as governments look to improve operational efficiencies and security measures in the public domain.
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