Chainlink partnered with the US Department of Commerce to put macroeconomic data on the blockchain. Secretary Howard Lutnick teased this plan earlier this week, and it’s already in motion.
Apparently, several other blockchains are also included in this program, but reports vary as to how many or which ones are participating. So far, LINK is the only relevant token to spike in value.
Chainlink to Host US Economic Data
When Commerce Secretary Howard Lutnick announced his intention to put US macroeconomic data on the blockchain, it drew a lot of skepticism. Why do this, and how will the Department of Commerce carry it out?
Today, however, Chainlink’s announcement that it partnered with the US drew a lot of attention.
Thanks to this partnership, Chainlink will encode important US macroeconomic data on the blockchain. This includes figures like the Real GDP, PCE Price Index, and Real Final Sales to Private Domestic Purchasers.
Such an integration might enable new niche uses for blockchain markets.
Chainlink, the blockchain infrastructure firm, has been putting a priority on US regulatory compliance lately. The firm is riding high on ambitious partnerships, and its LINK token received the support of a new DAT today. Among all these factors, Chainlink’s partnership announcement caused its token price to rally.
Chainlink (LINK) Price Performance. Source: CoinGeckoWho’s In The Blockchain Bonanza?
However, Chainlink isn’t the only firm that can partner with the US. Although its early announcement led LINK-centric hype to go viral, other chains have demonstrated the ability to encode US financial data.
It quickly became apparent that this partnership extends to several open source blockchains:
The full list of blockchains partnering with the US isn’t quite clear yet; Bloomberg reported nine participants, including BTC and SOL, while Chainlink mentioned ten—a list that doesn’t include either of those. Thanks to this confusion, none of the other related tokens has risen quite like LINK has.
Still, this blockchain bonanza begs an important question: why is the US partnering with all these firms besides Chainlink? If this economic data is encoded on one open-source blockchain, will ten really make a difference? How does this scattershot approach add value?
Some analysts have developed an interesting theory. Trump’s administration has begun firing officials who report bearish macroeconomic data.
It may soon orchestrate a takeover at the Federal Reserve. In other words, upcoming economic reports could lose a lot of their credibility, especially among international investors.
If the markets express skepticism that future US data is compromised, this blockchain strategy might be an attempt to rebuild some trust.
The Trump Administration might claim that blockchain’s transparent infrastructure can ensure credibility for this data. As of now, this is just a theory. We’ll need to observe the situation as it develops and see how markets react.
The post US Commerce Department Adopts Chainlink for On-Chain Economic Data Plan appeared first on BeInCrypto.
Source: https://beincrypto.com/chainlink-us-economic-data-blockchain/
