California Considers enabling companies to store data on Blockchain. In case California will adopt this measure, the state would join Delaware and Wyoming in their approach to allow companies to utilize the tech for administrative purposes.
24 April, AtoZ Markets – California officials have decided to make the state the next progressive place that enables companies to store data on a Blockchain. Very soon, Californian firms might be able to store their information, this including the data about stockholders, on a Blockchain.
California Considers Enabling Companies to Store Data on Blockchain
California’s Senator Robert Hertzberg has introduced the Bill 838 back in January. However, it is only recently that the Bill has attracted attention. The State Senate’s Banking and Financial Institutions Committee has passed the measure to the Judiciary Committee on April 18 after giving it a “do pass” recommendation.
In case approved by the Committee, the full Senate will be required to vote on the Bill. This would further legally recognize the information about company’s stocks. This includes ownership data stored on a Blockchain.
The latest version of the Bill would also enable “records administered by or on behalf of the corporation in which the names of all of the corporation’s stockholders of record, the address and number of shares registered in the name of each of those stockholders, and all issuances and transfers of stock of the corporation to be recorded and kept on or by means of blockchain technology or one or more distributed electronic networks.”
Details of the Bill 838
In the official statement, Mr. Hertzberg has noted that the Bill is a part of a move to aid California to keep up with ever-changing financial technology. He has explained:
“The world around us is changing, and government must adapt with these rapidly evolving times. California needs to continue our legacy of taking on new and developing technologies, especially ones like blockchain, which is being embraced worldwide and presents a strong level of security that is resistant to hacking.”
In case California will adopt this measure, the state would join Delaware and Wyoming in their approach to allow companies to utilize the tech for administrative purposes.
It is known that California’s proposed bill comprises several stipulations. The law declares that the information must be capable of being “converted into clearly legible paper within a reasonable period of time.” Moreover, the bill mentions that the records can be used to store information that is already present in stock certificates.
Think we missed something? Let us know in the comments section below.