The COVID-19 crisis puts blockchain solutions in a small but notable spotlight

Last weekend, this editor wrote about a U.S. Senate staff memo that notably included a section on blockchain's possible use for crisis-time voting – that is, when the Senate itself may not be able to congregate in the chamber to cast their decisions.

To be sure, the memo itself probably won’t amount to much beyond interesting discussion. The roundtable that the memo was tied to resulted in no mention of the technology and the public response to the idea wasn't exactly supportive, either.

But as I noted in a report on Monday about a newly-filed Congressional bill that would, if enacted, create a nationwide blockchain network for tracking medical supplies. There's an intriguing common theme at work here: successful or not, blockchain is slowly but surely entering the conversation about how to solve novel challenges posed by the coronavirus pandemic.

The proposed legislation "was created in response to the failures of the SNS to provide personal protection equipment, ventilators and other vital equipment during the current COVID-19 pandemic,” per a statement from the office of Rep. Stephen Lynch (D-MA), the bill’s chief sponsor. The bill would even set aside $25 million for each of two fiscal years to build the network. The fundamental idea: create an observational window into possible supply shortages before those supply shortages become apparent at the worst possible time, like, during a national pandemic.

Back in March, I spoke with Rep. Darren Soto, one of the bill's co-sponsors about efforts of the Congressional Blockchain Caucus. This group has advanced the technology's cause within a chamber that is often averse to new ways of doing things. Soto told me that "this type of technology can help us start addressing complex problems that would have been impossible to get our arms around 20-30 years ago." He didn't say that in the context of the coronavirus pandemic, but the crisis may seem to help him make that case.

There have been other concerted efforts on this front as well. CoinDesk's Nik De reported last week that "[e]leven members of Congress are calling on the U.S. Treasury Department to look at new technologies, including blockchain and distributed ledger technology (DLT), to help streamline how cash and supplies are distributed under a federal law trying to boost the economy during the COVID-19 crisis." 

Soto, who spearheaded the letter-writing effort, later told CoinDesk that "we could see greater speed and efficiency right now."

Meanwhile, the problem itself is an urgent one. Both rounds of coronavirus employment-related stimulus that were included in a $2.2 trillion relief law signed in March have been plagued by issues and complaints about unequal access to funds. And reports that funds are being sent to people who don't reside in the U.S. or are dead suggests that more oversight into the flow of money might be helpful.

Ultimately, it's more likely than not that these blockchain-related proposals or ideas will be slow-going and may not even see the light of day until after the crisis period passes. But it's nonetheless fascinating that such conversations – involving what is still a mostly niche, experimental technology – are happening at all.