New bill pushes blockchain use in US Veterans Affairs

Getting your Trinity Audio player ready...

A lawmaker in the United States has introduced a new bill to promote blockchain integration in the Department of Veteran Affairs (VA).

The bill by Rep. Nancy Mace (R-SC) directs the VA to study the power of blockchain technology and how it can be used to enhance efficiency and cut costs for the department.

The proposed bill titled “Veterans Affairs Distributed Ledger Innovation Act of 2024” states that blockchain could “significantly improve the allocation of benefits, management of insurance programs and maintenance of records within the Department of Veterans Affairs.”

Mace has been one of the leading blockchain proponents in the U.S. Congress. In May, she introduced the Border Security and Blockchain Technology Act, pushing for the technology’s use to secure U.S. borders.

With her new bill, the Congresswoman says she intends to deliver better, cheaper, more secure services to the veterans, who “deserve nothing less than the best.”

“We need to bring the federal government into the 21st century. This bill will open the door to research on improving outdated systems that fail our veterans because we owe it to them to use every tool at our disposal to improve their lives.”

The U.S. veteran community is reportedly above 18 million and constitutes nearly 7% of the country’s population. In 2022, the government spent $266 billion on veterans, a figure that’s expected to hit $369 billion in 2025. Over half of this goes to their pensions and compensations, while most of what’s left is channeled toward medical care.

Under the new bill, the VA must submit a report detailing blockchain integration’s expected benefits and risks to the Senate and House Veteran Affairs committees within a year. This report must delve into how the technology impacts veterans’ data storage, benefits distribution, insurance claims and more.

The VA has been criticized for failing to modernize its systems, which Mace claims date back to the ’90s. In its most recent budget request, the department came under fire for “focusing on maintaining legacy systems over modernizing them.” In response, the VA said that its budget doesn’t allow it to explore new technology.

The bill has received the support of the Chamber of Digital Commerce.

“Blockchain technology can significantly improve the lives of our veterans by ensuring they receive the benefits and services they deserve in a transparent and secure manner,” commented Cody Carbone, the Chamber’s Chief Policy Officer.

Watch: Unbounded Capital Summit teaches value of scalable blockchain