California DMV Wants to Digitize Car Titles to Curb Fraud Schemes

California's Department of Motor Vehicles has tapped blockchain technology in a move to digitize car titles against fraud schemes and supposedly smoothen the title transfer process.

First reported by Reuters on Tuesday, the California DMV has already digitized over 42 million car titles on the Ava Labs' Avalanche blockchain to detect illegal activities faster.

Ava Labs president John Wu claimed the cooperation would allow residents to claim and monitor their car titles just through their phones.

The digitalized car titles are expected to become accessible as soon as early next year, although the DMV has already started testing for the customer infrastructure of its planned app.

US Gov't Partners with Blockchain Companies for Digitalized Operations

This is the second time Ava Labs has been contracted by a Federal agency as the US government further integrates blockchain technology in digitalizing services and properties.

In 2021, financial consultant firm Deloitte partnered with Ava Labs to develop cloud-based platforms to "streamline disaster reimbursement applications" with the Federal Emergency Management Agency.

The collaboration is touted to help state and local governments distribute disaster response reimbursements efficiently "while minimizing fraud, waste, and abuse."

The Department of Homeland Security has also opened plans to utilize blockchain technology for "enhanced transparency and auditing of public service operations" against counterfeit products and digital fraud schemes.

California Taps into Modern Tech to Automate Operations

Blockchain technology is also not the modern tool the California government, which is dead center in Silicon Valley's trends, has employed to improve operations and services.

California Gov. Gavin Newsom earlier signaled plans to use generative AI to automate customer services and solve traffic congestions in the state.

So far, the state is currently in talks with several AI firms and startups to test potential applications of their technology to address California's long-lying issues.

This is in addition to California's recent policies to encourage residents and companies to switch to solar panels through incentives and tax deductions.