One of government's key functions is to build and maintain the legal and regulatory framework to support economic growth. The rise of various technologies, blockchain in this case, should be considered for government adoption and use in the context of that function.
This is a good, brief article about how some U.S. state governments, and Rhode Island in particular, are starting to view blockchain not as some exotic technology somewhere down the future, but as a tool to make easier and more standard personal and organizational identification and payment.
Basically, the technology is making routine transactions between companies and governments, as well as companies and consumers, much easier and improving accountability in the process for regulatory purposes. It looks like it's going to be very helpful in making government much better at one of its core functions. It should be explored by local governments as well. Check out this advice from one of the U.S. leaders on this topic.
. . . companies will look to build headquarters in states that also rely on blockchain technology and understand its importance in supporting innovation and business growth. The state of Rhode Island can be seen as a role model for its changing of law to make it easier for blockchain adoption and its development of a regulatory sandbox in the financial services area. This allows new companies to come in and request modified blockchain regulation while also identifying any consumer protection issues. Together, these initiatives have created a modern environment that continues to attract new and innovative businesses.