Puerto Rico’s politicians will convene meetings to discuss ways to harness the blockchain technology that supports cryptocurrencies such as Bitcoin to combat government corruption.
Rafael Hernandez, Puerto Rico House Speaker, announced this month that he will begin meeting with members of the island’s burgeoning blockchain space to discuss developing “smart contracts” based on embedded computer software in the guidelines that could improve the public sector’s accountability and transparency.
The 3.3 million-population US territory has been rocked by corruption scandals in recent years. Catano’s mayor pleaded guilty on Friday to taking more than $100,000 in bribes and fancy watches in exchange for millions in municipal contracts.
Félix Delgado, the mayor of Catao on the north coast, resigned on Tuesday and is scheduled to be sentenced in March 2022 as part of a plea agreement with authorities. If convicted, Delgado could face a maximum sentence of five years in jail.
US Attorney Stephen Muldrow said officials have seized five luxury watches and more than $100,000 in cash as part of the investigation.
The local Federal Bureau of Investigation has indicated that more public-sector indictments are being considered.
“We have a significant confidence issue,” Hernandez told Bloomberg on the margins of the Puerto Rico Blockchain Trade Association’s annual conference. “And this may be a contributing factor to the solution.”
According to Society Space’s Jose Atiles, “Puerto Rico is one of the world’s most corrupt countries. Their political system is dysfunctional, and their leaders are either inept or corrupt.”
Crypto Innovation
Meanwhile, Hernandez noted that the business gatherings are part of a larger attempt to establish Puerto Rico as a center for cryptocurrency and blockchain innovation.
The island’s tax incentives, particularly the absence of capital gains taxes on all earnings, including those on crypto-currency gains, have aided in the recruitment of thousands of new residents.
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