A recent tech bill related to cryptocurrency and blockchain has been abuzz in legislation. The CHIPS and Science act has scaled beyond the first hurdle of congress, winning the vote 243 to 147. Many are in shock that the bill has already made it this far, only needing the signature of the current President of the United States, Joe Biden. While some say the President signing the bill can be seen as a formality, other critics believe this may not be the case. The bill promises to help reduce the manufacturing cost of highly needed microchips and semi-conductors, subsidizing them for production within the domestic landscape.
After the world was shocked by the geographic, social, political, and economic shift brought upon by the COVID-19 pandemic, the general sentiment was that remote work and the technology industry needed to grow at a faster pace to keep up with global demand. There was, and still is, an evident strong demand for chips and other related hardware materials. The mismatch in supply and demand has caused a surge in prices, and a dangerous reliance on international suppliers.
A Modern Industrial Economy
In the past, the sign of a growing economy was job creation within the manufacturing and industrial sectors. While the presumption was that we are moving in an everchanging world away from these types of jobs, the bill says otherwise. Biden believes that manufacturing of hardware is the way forward, stating “For decades some experts said we needed to give up on manufacturing in America. I never believed that. Manufacturing jobs are back”/ “Thanks to this bill, we are going to have even more of them”
Perhaps of chief importance for crypto enthusiasts is that this role will inadvertently push forward the national understanding of digital currencies, speed of transition, and the need for an established recognized blockchain ecosystem. In tandem with the bill, Biden and his team will select a digital currency advisor for the administration. Operating under the Science and Technology policy office, many believe that this is the right step forward in the current race towards getting a handle on the metaverse and Web3.0 in general.
While some senators and proponents of cryptocurrency are elated at this news, not everyone seems to be pleased with the way things are on course. Of course, the political beast is an old beast and one that is slow to change for fear of reprisal.
The Other Side of the (Crypto) Coin
Although the majority of senators have voted for the bill, there are some notable concerns from the 147 votes against, as well as public opinion. Among prominent opposition is a small group of legislators that are led by Bernie Sanders, who is extremely agitated and in disbelief, stating that the bill would be nothing more than a “blank cheque” for many manufacturers to access funds for their companies, growing at alarming rates. Saunders also goes on to claim that some members of congress were eager to “pay the bribe” despite the fact that there is a clear semi-conductor and microchip shortage.
A recent public statement by Sanders and his team said that although the bill may seem great at face value, this would in turn only help to solidify the oligopoly on the chip manufacturing market. The top five leaders in this space would receive the majority of the funding, despite their overall profits netting upwards of $70 Billion in the last year.
Although most concerns were with the proper conduct of business, there is currently no official opposition on advisory regarding moving blockchain technology forward.
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