At the same time, and as shown by cryptocurrencies like Bitcoin, blockchain technology could disrupt a number of sectors long considered government monopolies, such as currency issuance, and reduce the effectiveness of some traditional policy and regulatory approaches.

A key challenge for policymakers seeking to learn about blockchain is the often overly superficial or technical nature of the information available about it. In this report, we chart a middle course by providing an accessible, but still rigorous, explainer of the technology and the way it works. We then present a number of uses this technology may have in the broader public sector and analyze key implications and challenges it poses for public policy. Finally, we provide five recommendations that should help governments capture the technology’s potential benefits while avoiding its pitfalls.