Illinois Blockchain: State Bets Blockchain Can Kill Entitlement Fraud

Feb 28, 2018

Alaska and Idaho issued crypto investment cautions; New York and Washington went the registration route; Delaware and New Hampshire scrambled to seduce fintech startups.

And for its part, Illinois is envisioning a blockchain-fueled future…to slash bureaucracy.

Illinois Blockchain: Lawmakers Careful Not To Scare Away Fintech

“New York went in and over-regulated (cryptocurrencies) and what ended up happening was a lot of those companies left the state,” explained Illinois State Representative Jaime Andrade.

“With myself and [Rep.] Zalewski working on this together, I think we will be able to make sure we protect the consumer, but at the same time…make sure the state of Illinois is an inviting environment for this type of technology.”

Mr. Zalewski continued:

“We are under tremendous pressure in this state to make government more efficient. This technology has the opportunity to help remake government. That’s what we’re interested in. The goal of this is not to regulate it in a way that’s going to make people uncomfortable to use it in the future.”

Could Blockchain Technology Crack Down On Entitlement Fraud, Increase Efficiency and Enhance Privacy?

Currently, a task force is exploring how Illinois can leverage blockchain technology to improve inter-government operations. Mainly, they’re considering platforms and programs to manage state resident IDs. The group is also looking at ways to mitigate entitlement fraud via tokenized assets.

If the idea germinates into legislation, residents would store private identifiers — like tax records, voting history, and drivers licenses — as personal nodes on a blockchain database. This way, individuals could control what they shared and didn’t share.

The report states:

“This new model would reimagine the relationship between state and individual, as government would become the verifier, rather than the custodian of people’s public service identity. Government would move from providing data storage to verifying identity, allowing users to store access to personal data securely on devices.”

Connect With An Illinois Blockchain Lawyer

Do you have blockchain or cryptocurrency legal questions? There’s a good chance we have the answers.

Gordon Law Group works with entrepreneurs, startups, and businesses in the fintech niche. Our team performs compliance analysis, purchase consultations, cryptocurrency tax calculations, and more.

Get in touch today. Let’s figure out how our cryptocurrency legal team can help you.

Article Sources

Kelso, C. E. (2018, January 05). United States of Bitcoin: Illinois Gives Crypto Love While Other States Hate. Retrieved February 28, 2018, from

Zhao, W. (2018, February 02). Illinois Eyes Blockchain for IDs and Public Asset Management. Retrieved February 28, 2018, from


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