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

Analysts from the Moody's rating agency believe that the blockchain can bring significant benefits to local governments - it can be used for issuing bonds and a number of budget operations.

According to Moody's, thanks to blockchain, American 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 on cryptocurrencies and blockchain is not yet very clear.

The implementation of blockchain for issuing bonds at the municipal 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 carried out the sale of debt using the blockchain, but in parallel they also carried out the traditional support of the transaction. This is the first step towards the use of blockchain in the process of issuing municipal securities. Blockchain is good for the lack of the ability 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, to conduct voting.”

Moody's reported that the recent split of the USDC stablecoin from the dollar could reduce confidence in the entire stablecoin industry.