California DMV Tests Tezo’s Blockchain NFT Car Title Digitization

California’s Department of Motor Vehicles will test the Tezos network for digitizing 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 DMV, Tezos and crypto software development company Oxhead Alpha. DMC is a government agency that registers motor vehicles and boats and is responsible for issuing driver’s licenses.

Physical documents that are moved to NFTs

In addition to digitizing car titles, it will also aim to make the process of property transfer between owners easier. Currently, the DMV is operating on a private testnet version of the effort on Tezos.

California DMV Chief Digital Officer Ajay Gupta said the agency hoped to complete its “shadow book.” This will fully replicate the state’s title database. It expects to do this in the next three months, with consumer-facing applications following. This will include digital wallets.

California is a hub of innovation for the country, and a state agency using the technology is a step for the nation. However, the authorities in the state are not shy about tackling what they see as problems in the country.

The announcement did not have a major impact on the price of Tezos (XTZ).

California and other states enter into settlements with Nexo

Recently, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with crypto lending company Nexo. The $22.5 million settlement ended the investigation led by several state regulators. The North American Securities Administrators Association (NASAA) task force led this effort, examining Nexo’s Earn Interest Products program.

Authorities in the United States seem open to using blockchain technology for various purposes. However, they have shown a growing dissatisfaction with high-performance products. As such, agencies such as the United States Securities and Exchange Commission (SEC) have stepped up their efforts.

Pushes for regulation after FTX collapse

In addition to the settlement agreement with Nexo, California is taking other steps to regulate the crypto market. The collapse of FTX, and other major events in the market last year, has accelerated the legislators’ efforts.

The idea is to ensure that there are checks and balances within the crypto industry and that investors are protected. Among the problems is the fact that stablecoins must show sufficient reserves and AML and KYC checks.