CARSON CITY, Nev. (AP) – In the Nevada desert, a cryptocurrency magnate hopes to make dreams of a futuristic ‘smart city’ come true. To do that, he asks the state to let companies like him form local governments on the land they own, giving them power over everything from schools to law enforcement.
Jeffrey Berns, CEO of Nevada’s Blockchains LLC, envisions a city where people not only buy goods and services with digital currency, but also record their entire online footprint – financial statements, medical records and personal information – on blockchain. Blockchain is a digital ledger best known for recording cryptocurrency transactions, but it has also been adopted by some local governments for everything from documenting marriage licenses to facilitate elections
The company aims to gain ground in rural Storey County, 12 miles east of Reno, by 2022. It suggests to build 15,000 homes and 3 million square feet of commercial and industrial space within 75 years. Berns, whose idea is the basis for design legislation seen behind closed doors last week, some lawmakers said the traditional government does not provide enough flexibility to create a community where people can think of new uses for this technology.
“There has to be a place on this planet where people are willing to start all over again and say, ‘We’re not going to do things this way just because it’s the way we’ve done it,’” Berns said.
He wants Nevada to change its laws to allow “innovation zones,” where corporations would have powers such as those of a provincial government, including setting up courts, levying taxes, and building infrastructure while making decisions about land and land. water management.
The prospect of intrigue and skepticism has been received from Nevada lawmakers, although the legislation has yet to be formally filed or discussed in public hearings. Most in the Democrat-controlled legislature are eager to diversify Nevada’s tourism-dependent economy, but many fear backlash against business incentives because they struggle to fund health care and education.
This proposal differs from the major tax breaks they have been wary of offering, such as the $ 1.3 billion given to Tesla to build its battery factory in northern Nevada or the billions that New York and Virginia offered Amazon to build a new headquarters.
But it raises deeper problems about increasing tech companies’ grip on everyday life at a time when antitrust regulators and Democrats in Congress argue tech giants like Facebook and Google rule markets and endanger people’s privacy.
Blockchains LLC and so-called innovation zones were a key part of Governor Steve Sisolak’s State of the State address in Januarywhen he outlined plans to rebuild a more diversified economy after the coronavirus pandemic.
Sisolak, whose campaign and affiliated political action committee received a total of $ 60,000 from the company, said the proposal would turn Nevada into “the epicenter of this emerging industry and create the high-paying jobs and income that comes with it.”
The governor’s cabinet declined to comment further on innovation zones. But with Sisolak’s support, the idea could be seriously considered by the legislature.
“I don’t know enough yet to say if I’m comfortable with it as the next step. But see, it’s a big idea and Nevada is built on big ideas, so let’s hear it, ”said Senator Ben Kieckhefer, a Republican who sponsored blockchain-related legislation in 2017 and 2019.
If lawmakers back the proposal, technology companies with 50,000 acres of land (200 square kilometers) promising a $ 1 billion investment could create zones controlled by three people, such as provincial commissioners. Under the draft law, there would initially be two of the company itself.
In Storey County, where the Tesla factory is located, officials are waiting for more information before giving their opinion, but say there are still questions to be answered.
Commissioner Lance Gilman, who owns the Mustang Ranch brothel and bought most of the county’s land to turn it into an industrial park decades ago, provided support attract technology companies to the area and grow the population. But Gilman, who worked in marketing for Blockchains LLC from 2018 to 2019, said there are many unknowns about relinquishing control to a new jurisdiction that falls within county boundaries.
“(The bill) wants the host nation to mold it, become successful, not pay a lot of money and eventually let the entire county and all operations take over if it becomes successful,” Gilman said. “If it doesn’t work out, who will be responsible for all the things that have been built in the meantime?”
The province’s master plan does not allow residential development in the Tahoe-Reno Industrial Center, where most of Blockchain LLC’s property is located, but it does allow 3,500 homes in Painted Rock, a subdivision of the company’s 271 square miles.
Berns said officials told him in an informal discussion two years ago that they were not interested in zoning for more homes, a meeting confirmed by former county manager Pat Whitten. Berns understands that Storey County elected leaders may not want an experimental town in their backyards, but believes the idea must be a state decision because of the potential to “uniquely define Nevada in the future.”
‘We bought 70,000 hectares of land in the province. What did they think we were going to do? ” he said.
The former consumer protection lawyer said the idea grew out of the way he sees the government as an unnecessary intermediary between people and ideas.
“For us to take risks and be flexible, nimble and figure out things like you do when designing new products, that’s not how the government works. So why don’t we just set up a government that let us do those things? Berns said.
Associated Press writer Michelle L. Price contributed reporting from Las Vegas. Metz is a Corps Member for the Associated Press / Report for America Statehouse News Initiative. Report for America is a national nonprofit service program that places journalists in newsrooms to report on hidden issues.