It's understandable to initially think blockchain tech is useful mostly for the needs of national governments (currency, banking, voting, et al). What should local governments consider it for? Well, the government of Catalan in Spain (basically a local government, roughly equivalent in structure and responsibilities to something between a U.S. state and a county) is developing a strategy and running pilots on a variety of things. Their initial focus is on establishing tools for citizens to establish and manage their own identity without government control. 

But they are taking a very wide view, as is clear in this interview. In part because of the politics in Spain around the 'Catalan question', they are paying attention to building an environment of companies and educated citizens who can develop and support not just blockchain applications, but associated technologies like Internet of Things, 5G, and AI. They are clearly driven by their governmental and societal needs, not by the 'cool tech.' This is exactly the right approach governments should be taking, and worth watching.