Blockchain Can Lower UK Govt Costs by 1% - MP Report

Blockchain technology is capable of reducing UK government spending by 1%, Eddie Hughes, member of the British Parliament, highlighted in a report and called for the appointment of a chief blockchain officer.

Hughes urged the government to back blockchain, a distributed ledger technology (DLT), as it bears the potential to boost economic progress and individual freedom, as well as restore the weakened societal trust in the establishment.

He outlined three key points in the “Unlocking Blockchain” report published this week by FREER, an initiative of the Institute of Economic Affairs.

The UK should set a target for government departments to employ blockchain and other technology and thus save 1% in the long term, mainly by cutting transaction and procurement costs. Hughes acknowledged it is hard to calculate the exact amount of the savings, as most studies on the matter are industry-specific. However, he estimated that the UK government could save around 8 billion British pounds in 2017-2018, as the total expenditure for the period is projected at around 802 billion British pounds. The saved money could go back to taxpayers or be reinvested in services.

The government should appoint a chief blockchain officer to oversee the adoption of DLT in public services and data and will be working with the public directly.

Efforts should be put in promoting the blockchain sector. Ideally, this will be a result of a government collaboration with UK universities and businesses.

The spheres that will benefit the most from the adoption of blockchain technology are retail, finance, healthcare, land registry and food supply chain, the MP noted.