Block Chain

WRITING A POSITION PAPER

Sample Detailed Outline

I. Introduction ___A. Introduce the topics of blockchain and municipal bonds ___B. Background on the issuance and trade of municipal bonds

___C. Assert the thesis: The municipal bond market needs to implement blockchain infrastructure to tokenize and fractionalize municipal bond issuances.

II. Argument ___A. The minimum share cost of $5,000 makes access to these tax-free investment instruments prohibitive. Tokenization and fractionalization would make municipal bonds available to a greater portion of the public. _____1. Argument, explanation and informed opinion _____2. Provide support/proof using more than one source (preferably three) ___B. Municipal bonds are purchased whole by large financial institutions meaning that the funds to repay the bond will exit the municipality leading to a decline in local wealth generation. Tokenization and fractionalization would provide a lower cost threshold to entry and local citizens would be able to benefit from investment in their own or nearby communities. _____1. Argument, explanation and informed opinion _____2. Provide support/proof using more than one source (preferably three) ___C. Municipal bonds are only traded via telephone. The digital access by investors to most markets has been prevalent for nearly two decades. The utilization of blockchain as the infrastructure of municipal bond issuances would lead to the modernization of this market. _____1. Argument, explanation and informed opinion _____2. Provide support/proof using more than one source (preferably three)

III. Counter Argument ___A. Summarize the counterclaims

· Too costly to implement

· Lack of interest by general public

· Municipalities are conservative and will not adopt

· Current regulations do not allow this type of trading

___B. Provide supporting information for counterclaims

___C. Refute the counterclaims (explain why these are not accurate or why the new process would be better)

· Cost savings would more than cover implementation of cost for issuance and trading would significantly decrease with efficiencies and limiting of third parties

· Lack of interest is primarily due to current system where municipal bonds are not available to the general public

· The lower cost of issuing municipal bonds on blockchain based systems will reduce the cost to municipalities to issue. Reducing budget costs are usually more important than ensuring traditional processes

· MSRB regulations can be changed. MSRB has already started to review this potential development. Also, the system can be built on current regulations and would not be in violation.

___D. Give evidence for argument

IV. Conclusion ___A. Restatement of proposition and argument demonstrating how the arguments prove or support your position ___B. Provide a plan of action but do not introduce new information