Alabama's recent crypto cold feet – the postponed votes on HB482 and HB484 – isn't just about investment strategy or government transparency. It’s a possible stumbling block on the way to greater economic opportunity, particularly for those whose voices are too frequently marginalized. Are we really thinking about who misses out when we close the door on innovation?

Africa's Leap, Alabama's Lag?

As Alabama argues the pros and cons of blockchain and Bitcoin, a quieter financial revolution is taking place in Africa. You are being redirected to Bloomberg’s article Driven by necessity and fueled by innovation, cryptocurrency adoption is exploding. Why? Because for millions, it's the only viable alternative to broken banking systems, exorbitant remittance fees, and governments that haven't delivered.

Now, connect the dots. Alabama’s reluctance is indicative of a larger skepticism bordering the crypto space, sowing doubt to play on fear of the unknown. But is that fear justified when the alternative is continuing to exclude people financially? Perhaps we just are too accustomed to the status quo. Let’s not forget the return on investment for marginalized communities, at home and abroad.

  • Unbanked Populations: A staggering percentage of Africans lack access to traditional banking services. Crypto offers a lifeline, allowing them to participate in the global economy.
  • Remittance Costs: Sending money home is a lifeline for many African families. Traditional channels bleed them dry with fees. Crypto provides a faster, cheaper alternative.
  • Currency Devaluation: In countries plagued by inflation and unstable currencies, Bitcoin and other cryptocurrencies offer a haven of stability.

As the Alabama House Ways and Means General Fund Committee’s delay shows, that’s highly unlikely. It is an unfortunate lost opportunity to have learnt from and worked with these new and emerging markets. What if Alabama’s $6 million investment in crypto assets, as intended by HB482, could really jumpstart blockchain development on the African continent? That would build new economic opportunity and create more ties between our continents. Imagine if HB484’s effort at blockchain transparency could encourage efforts like it in other African countries struggling with corruption.

Rep. Whitt’s concerns about Bitcoin’s volatility are valid and even expected. Surely no one is interested in seeing billions of dollars in state funds disappear overnight. Framing volatility as the only reason to oppose crypto is a deeply harmful simplification.

Volatility vs. Vitality: A False Choice?

First, volatility is a feature of every emerging market and technology. The early adopters take the biggest risk, but they enjoy the largest upside. Is Alabama really ready to turn down every tasty morsel on the table simply because it involves some risk?

Secondly, diversification is key. In reality, HB482 only called for investing a maximum of 10% of state funds in crypto assets. This isn’t an all-in bet, this is a calculated move to test the waters in a new asset class. And as Rep. Shaw testified, cryptocurrency might one day provide a hedge against the inevitable collapse of the dollar. The irony, of course, is that taking no action by government is high risk.

Thirdly is the promise of stablecoins and other less volatile crypto assets. Crypto is a rapidly changing environment, and it’s a mistake to view it only through the lens of Bitcoin’s price swings.

Let’s look beyond volatility. Instead, we should be focused on how crypto can help spur innovation, grow our state’s economy, and uplift underserved communities across Alabama. Shouldn’t our focus be on how blockchain technology can improve efficiency and transparency in government, like HB484 seeks to do?

HB484’s requirement to publish all government expenditures on a blockchain by 2030 is a particularly interesting aspect. The goal of increased transparency is laudable. Is it truly necessary? The Alabama Department of Finance has already submitted to the Legislature publicly available, frequent, detailed financial reports. Is this blockchain governance initiative an honest to goodness effort to make policy making better and more efficient, or just another tech solution looking for a problem?

Transparency or Just Another Digital Checkbook?

Of the ideas that would diversify outreach, the use of a state managed public blockchain to replace newspaper advertising for notices is the most intriguing. It provides a more convenient, cost-saving and efficient method of sharing public notice of meetings and contracts.

The true power of HB484 is its potential to show that Alabama is a leader in innovation and transparency. This administration’s decision sends a transparent message to the world. Alabama is serious about adopting new technologies to improve transparency and accountability in government. This, in turn, would make the state more attractive to investment and talent.

At the end of the day, Alabama’s crypto skepticism isn’t purely financial or technological. It's about vision. Will Alabama embrace the future of finance and empower its citizens, or will it cling to the past and risk being left behind? And the answer to that question might very well determine what the state’s economic future looks like. It has the potential to make our society more fair and inclusive.

Even more puzzling was the absence of Harbison himself on the 8th.

Instead of shying away, now is the moment for Alabama to lean in to the revolutionary possibilities cryptocurrency and blockchain technology have to offer. Welcome to the decentralized, digital future of finance! Now it’s up to Alabama to decide whether to be on the cutting edge, or be left in the dust.

It's time for Alabama to stop hesitating and start exploring the transformative potential of cryptocurrency and blockchain technology. The future of finance is here, and it's time to decide whether Alabama will be a leader or a follower.