According to reports, California’s Department of Motor Vehicles (DMV) wants to digitize car titles using the Tezos network. This will make car titles available as NFTs to Californians.
The Department is already testing the project and will adopt it if the test is successful. The venture originates from a partnership between the DMV, the blockchain network Tezos, and Oxhead Alpha, a company specializing in developing crypto software.
Turning Car Titles Into NFTs
Meanwhile, the DMV is a government agency responsible for registering boats and motor vehicles and issuing driver’s licenses to individuals. Apart from digitizing car titles, the government agency plans to make car title transfer easier between owners.
Presently, the entity is testing a version of the project on Tezos. Ajay Gupta, California DMV’s Chief Digital Officer, stated that the body wants to complete its “shadow ledger” to replicate California’s title database.
According to Gupta, the DMV hopes to achieve this goal over the next three months while replicating the same feat with consumer-facing applications like digital wallets. Furthermore, California is a center of innovation for the US, and utilizing blockchain technology by a state agency in California represents a significant step forward for the nation.
Also read:However, law enforcement agencies in the state are not hesitant to address what they perceive as problems or threats to their financial system. Lately, California’s DFPI (Department of Financial Protection and Innovation) revealed that it settled with the crypto lender Nexo.
The crypto lender had been under regulatory scrutiny for offering crypto services without a proper license.
California To Tighten Crypto Regulation After FTX Collapse
The crypto lender agreed to pay a settlement fee of about $22.5 million. This ended the large-scale investigation led by the NASAA (The North American Securities Administrators Association), which examined the company’s Earn Interest Product initiative.
Meanwhile, US authorities have shown massive support for blockchain technology. However, they have disapproved of high-yield products because they believe they mislead investors and resemble Ponzi schemes.
Apart from its recent settlement with Nexo, the Californian government is working towards more regulations for the crypto sector. The FTX debacle, which occurred in November 2022, has forced lawmakers to accelerate their efforts toward crypto regulation.
California aims to establish a system of oversight and accountability within the cryptocurrency industry to safeguard the interests of investors. One of the new guidelines is that stablecoin issuers must show they have sufficient reserves and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
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