Governor Chris Sununu intends to make New Hampshire “a leading jurisdiction for the development of sound and effective applications of blockchain technologies.” This comes on top of a new report from the Governor’s Commission on Cryptocurrencies and Digital Assets, which says blockchain offers improved methods for recording real estate deeds and other title documents.
Change is coming. New Hampshire in 2023 is following a very similar path to one laid out by Texas last year. Let’s take a look.
New Hampshire Should Play a “Leading Role,” Report Says
Yes, change is coming, but not overnight. Record systems are crucial components of well-functioning governments and businesses. Any suggested changes must win the support of the offices affected.
Why should agencies buy in? The governor’s commission deems blockchain an “important technological innovation.” Agency support will enable New Hampshire to play a “leading role” in encouraging its development.
The New Hampshire commission views blockchain as:
- An important innovation that could make government and commerce more efficient and effective.
- A fraud-resistant technology, useful to shield documents and data from manipulation.
So, what happens next?
Watch for New Hampshire agencies to begin trying out their own blockchain ideas.
And watch for a special state task force to explore blockchain’s potential for governmment use. This will include filing, recording, and storage systems in county offices.
Of course, there will be legal puzzles to solve, too. The commission even floated the concept of a dedicated blockchain docket in the New Hampshire Superior Court for dispute resolutions.
Texas Gets Ready for Blockchain in Recording Offices
In late 2022, the Texas Work Group on Blockchain Matters issued its report. It determined that blockchain has set the stage for the wide adoption of smart contracts and the use of blockchain in deed recordings.
The Work Group met each month for a year before issuing recommendations. During that time it heard from blockchain experts and hosted public hearings. The group’s committees focused on digital verification technology, smart contracts, energy, education, financial innovation, government agencies and recording offices, among other areas.
Why does a Work Group on Blockchain Matters exist in Texas in the first place? Because the Texas legislature passed House Bill 1576 into law. One of the law’s mandates is the production of a master plan to develop the Texas blockchain industry.
Like New Hampshire, Texas is getting serious about blockchain.
Federal Regulation Is Still Needed
Of course, no state operates in a vacuum. Federal standards might be necessary from a consumer protection standpoint.
And there’s another big issue. As long as the cryptocurrency market is barely regulated, investors are vulnerable to schemes and bad actors.
Granted, blockchain is not synonymous with the crypto market and all its drama. Yet the development of blockchain applications (such as tokens; see below) is connected with the crypto sector.
To date, federal regulators haven’t established definitive agency roles to deal with crypto. As government departments commit to overseeing crypto markets, investors will presumably be better protected. And that can only be good for blockchain and its implications for real estate ownership:
- Digital tokens on a blockchain can represent ownership, and make real estate easier to buy and sell.
- Tokenizing property values could, at least in theory, make real estate more inclusive — by enabling investors to buy fractional shares.
- Blockchain’s indelible ledger could make costly title searches and insurance policies obsolete.
The above are just a few examples of blockchain’s potential to transform real estate.
Your Move, Federal Government
Whatever we might think of the blockchain phenomenon, the time is more than ripe for federal legislators and regulators to protect consumers. They must step in to make sure cryptocurrency investments are on the level and backed up by reserves. And the protections need to have enforcement mechanisms.
Watch for substantial movement in this area ahead. We’ll keep our readers posted.
Supporting References
Chris Teale for GCN.com (Government Computer News, a part of GovExec.com): New Hampshire Could Play “Leading role” in Promoting Blockchain, Report Says (Jan. 26, 2023).
Texas 86th Legislature: H.B. No. 1576.
Bloomberg Opinion – Bill Dudley via AFR.com (Australian Financial Review, a Sydney Morning Herald publication): Crypto Is Worth Fixing. Regulators Should Get Moving (Jan. 30, 2023).
And as linked. Photo credit: Leah Kelley, via Pexels.