Puerto Rico Lawmakers Want to Use Blockchain to Cut Corruption

Puerto Rico Lawmakers Want to Use Blockchain to Cut Corruption

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Blockchain, A Safe Bet

Amidst a large number of corruption allegations, Puerto Rico has decided to take steps to remove corruption from its system.

In a recent instance, the mayor of Catano pleaded guilty to corruption allegations that were reported against him.

He accepted to have taken $100,000 in bribes and many luxury watches to approve municipal contracts that were worth a million dollars.

The issue of corruption is now being planned to be tackled by deploying the Blockchain system. For this purpose, Rafael Tatito Hernandez, the house speaker of Puerto Rico, has scheduled meetings.

He has lined up meetings with the members of the Blockchain industry. The discussion is expected to revolve around the creation of Smart Contracts. These will be integrated into the protocols through computer programs.

The objective of setting up the meeting with the Blockchain industry members is to bring transparency and accountability into the system.

The public sector has especially lost its value since allegations of corruption have started to be flashed on every news.

The implementation of Blockchain to cut corruption from the system will tick one more point. This will be related to making Puerto Rico a hub for the Cryptocurrency and Blockchain industry. Innovations in the industry are expected to leave a global impact.

Rafael Tatito Hernandez touched upon the aspect of credibility as well while speaking at Puerto Rico Blockchain Trade Association Conference.

He said that the island was suffering from a “real credibility problem,” and enabling Blockchain in the system may be a part of the right solution.

What Has Worked So Far?

Puerto Rico has so far achieved in attracting the residents through its tax incentives.

The major tax incentive to have worked in favor of the island is the exemption of tax on capital gains. This also includes any gain that has been derived from Cryptocurrency.

According to data published by the Department of Economic Development, the demand for these tax breaks has increased by almost three times. Puerto Rico has also broken the record of approving people to claim these benefits. Puerto Rico has so far allowed around 1,000 people to claim the tax breaks in 2021 alone.

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