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California’s Department of Motor Vehicles will test the Tezos network for the digitization of car titles as NFTs. The agency may also release a consumer application after successful testing.
The California Department of Motor Vehicles (DMV) is testing the Tezos network to digitize car titles as NFTs. The venture comes from a collaboration between the DMV, Tezos, and crypto software development company Oxhead Alpha. The DMC is a state agency that registers motor vehicles and boats and is responsible for issuing driving licenses.
Physical Documents Moving to NFTs
In addition to digitizing car titles, it will also aim to make the process of title transfers between owners easier. Currently, the DMV is operating on a private testnet version of the effort on Tezos.
Chief Digital Officer of the California DMV Ajay Gupta said the agency hoped to finalize its “shadow ledger.” This would fully replicate the state’s title database. It expects to do this in the next three months, with consumer-facing applications following after. This would include digital wallets.
California is a hub of innovation for the country, and a state agency using the tech is a step for the nation. However, authorities in the state are not shy about tackling what they see as issues in the country.
The announcement had no major impact on the price of Tezos (XTZ).
California and Other States Reach Settlement with Nexo
Recently, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered a settlement agreement with crypto lending company Nexo. The $22.5 million settlement brought an end to the investigation led by several state regulators. The North American Securities Administrators Association (NASAA) working group led this effort, examining Nexo’s Earn Interest Product program.
Authorities in the United States seem open to using blockchain technology for various purposes. However, they have shown an increasing amount of displeasure against high-yield products. As such, agencies like the United States Securities and Exchange Commission (SEC) have stepped up their efforts.
Pushing for Regulation Following FTX Collapse
Besides the settlement agreement with Nexo, California is taking other steps to regulate the crypto market. The collapse of FTX, and other major incidents in the market last year, have accelerated lawmakers’ efforts.
The idea is to ensure that there are checks and balances within the crypto industry and that investors are protected. Among the issues is the fact that stablecoins must show adequate reserves and AML and KYC checks.