Page 146 - The Fourth Industrial Revolution

Shift 18: Governments and the Blockchain

The tipping point: Tax collected for the first time by a government via a blockchain
By 2025: 73% of respondents expected this tipping point to have occurred
The blockchain creates both opportunities and challenges for countries. On the one hand, it is
unregulated and not overseen by any central bank, meaning less control over monetary policy. On the
other hand, it creates the ability for new taxing mechanisms to be built into the blockchain itself (e.g. a
small transaction tax).

Unknown impacts, or cut both ways
– Central banks and monetary policy
– Corruption
– Real-time taxation
– Role of government

The shift in action
In 2015, the first virtual nation, BitNation, was created using blockchain as the foundation identification
technology for citizen’s identity cards. At the same time, Estonia became the first real government to
deploy the blockchain technology.
Sources: https://bitnation.co/; http://www.pymnts.com/news/2014/estonian-national-id-cards-
embrace-electronic-payment-capabilities/

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