MONTGOMERY, Ala. – The Alabama Blockchain Study Commission convened in Montgomery on Thursday to discuss the rapidly evolving world of blockchain technology and cryptocurrencies.
Wade Preston of the Alabama Blockchain Alliance, speaking with CBS 42, explained that blockchain underpins cryptocurrencies like Bitcoin. In light of this burgeoning technology, state leaders are keen on understanding and potentially leveraging its capabilities. “If you think about it, the internet right as Google was coming about in the mid to late 90’s… we knew something was happening,” Preston noted. “But we didn’t know how it was going to change the world that we live in.” He further emphasized the potential of cryptocurrencies, citing their decentralized nature as a key advantage. “If it’s yours, you have it. And you are the only one that has access to it,” Preston said, underscoring the freedom from needing third-party permission for transactions.
Senator Greg Albritton (R-Atmore) voiced some concerns, particularly regarding the intangible nature of cryptocurrency compared to the U.S. dollar. “Now this technology is moving so far beyond. We’ve got to get a handle on it in our heads, and our minds,” Albritton stated, emphasizing the importance of adapting to keep pace with technological advancements.
Amanda Senn of the Alabama Securities Commission clarified that crypto is a digital currency with fair market value, which changes based on the willingness of someone to pay for it in US dollars. She also pointed out the security risks associated with lack of established cybersecurity measures in this new financial space. “There’s a framework in place and there are measures and protections behind the U.S. dollar that don’t exist right now with cryptocurrency.”
Senator Bobby Singleton (D-Greensboro) stressed the importance of ongoing education on the topic, regardless of future administrations’ policies, and advocating for consumer protections, noting “Be prepared to set up those guardrails for consumer protections. And be open minded to the industry as it develops,” while simultaneously “making sure we’re protecting our citizens in the state.”
The commission is eager to observe the policies of the Trump administration related to the crypto, and also hopes to gain further insights from entrepreneurs who are currently utilizing blockchain technology at their upcoming meetings.
