CARSON CITY, Nevada (AP) – In the Nevada desert, a cryptocurrency mogul hopes to turn the dreams of a futuristic “smart city” into reality. To do so, he calls on the state to allow companies like his to form local governments on land they own, which would give them power above all else, from schools to law enforcement.
Jeffrey Berns, CEO of Nevada-based Blockchains LLC, envisions a city where people not only buy goods and services in digital currency, but also register their entire online footprint (financial statements, medical records and personal data) on blockchain . Blockchain is a digital book known primarily for recording cryptocurrency transactions, but it has also been adopted by some local governments for everything from marriage license documentation. to facilitate elections.
The company wants to open land in 2022 in rural Storey County, 19 miles (19 kilometers) east of Reno. He is proposing build 15,000 homes and 3 million square feet of commercial and industrial space within 75 years. Berns, whose idea is the basis of the legislative project which some lawmakers saw behind closed doors last week said traditional government does not offer enough flexibility to create a community where people can invent new uses for this technology.
“There has to be a place somewhere on this planet where people are willing to start from scratch and say,‘ We’re not going to do things this way just because we did it, ’” Berns said.
He wants Nevada to change its laws to allow for “innovation zones,” where companies have powers like those of a county government, including the creation of court systems, the imposition of taxes, and the construction of infrastructure while they take land and water management decisions.
The outlook has been met with intrigue and skepticism by Nevada lawmakers, although the legislation has not yet been formally presented or discussed in public hearings. Most of the Democratic-controlled legislature is eager to diversify Nevada’s tourism-dependent economy, but many fear a backlash against business incentives as they struggle to fund health care and education.
This proposal differs from the large tax cuts that have been cautious to offer, such as the $ 1.3 billion given to Tesla to build its northern Nevada battery factory or the billions New York and Virginia offered Amazon to build a new corporate headquarters.
But it raises deeper questions about the increasing adherence of technology companies to everyday life at a time when antitrust regulators and denounce Democrats in Congress technology giants like Facebook and Google control markets and endanger people’s privacy.
Blockchains LLC and the so-called innovation zones were a key part of Steve Sisolak’s January government leadership on the state of the state, when he outlined plans to rebuild a more diversified economy after the coronavirus pandemic.
Sisolak, whose campaign and affiliated political action committee received a combined $ 60,000 from the company, said the proposal would transform Nevada into “the epicenter of this emerging industry and create jobs and well-earned income. paid that accompanies ”.
The governor’s office declined to comment further on the innovation zones. But with Sisolak’s support, the idea could have serious consideration in the legislature.
“I don’t know enough yet to say if I’m comfortable with this as a next step or not. But look, it’s a great idea and Nevada has been built from great ideas, so let’s hear it, ”said state Sen. Ben Kieckhefer, a Republican who sponsored blockchain-related legislation in 2017 and the 2019.
If lawmakers support the proposal, tech companies with 50,000 acres of land (200 square miles) that promise a $ 1 billion investment could create areas ruled by three people as county commissioners. The bill says two of them would initially be from the same company.
In Storey County, which is home to the Tesla factory, officials are waiting for more information before giving their opinion, but say questions still need to be answered.
Commissioner Lance Gilman, owner of the Mustang Ranch brothel and bought most of the county’s land to turn it into an industrial park decades ago, has supported attract technology companies to the area and grow its population. But Gilman, who worked in marketing for Blockchains LLC from 2018 to 2019, said there are many unknowns about the transfer of control to a new jurisdiction that lies within county boundaries.
“(The bill) wants the host county to let it form, be successful, not pay them a lot of money, and finally let them take over the entire county and all operations, if successful.” , said Gilman. “If it doesn’t succeed, who is responsible for everything that was built in the meantime?”
The county master plan it does not allow residential development in the industrial center of Tahoe-Reno, where most of the property of Blockchain LLC is located, but allows 3,500 homes in Painted Rock, a subsection 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 more homes, a meeting that was confirmed by former county manager Pat Whitten. Berns understands that Storey County’s elected leaders may not want an experimental city in their garden, but he believes the idea should be a state decision because of its potential to “uniquely define Nevada in the future.”
“We bought 70,000 acres of land in the county. What did they think we would do? He said.
The former consumer protection lawyer said the idea stems from how he sees the government as an unnecessary intermediary between people and ideas.
“So that we can take risks and be more flexible, agile and find out things like you do when you design new products, this is not how the government works. So why don’t we let ourselves create a government that allows us to do these things? “Berns said.
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Associated Press writer Michelle L. Price contributed information from Las Vegas. Metz is a member of the body of the Associated Press / Report for America Statehouse News Initiative. Report for America is a national non-profit service program that places journalists in newsrooms to report on covert topics.