California to establish Blockchain research group to look into how Blockchain can be utilized by local businesses and government. The group will also analyze the risks that might come from using this technology and how Blockchain can benefit businesses and government.
30 August, AtoZ Markets – California is set to soon create a working group for analysis of the potential benefits of Blockchain for the state. The authorities are especially interested in how it is best to update the state’s laws to make good use of this technology.
California to Establish Blockchain Research Group
California bill 2658 has been initially introduced this February. The bill has originally recognized “a record that is secured through blockchain technology is an electronic record.” Yet, the final version of the bill now directs the Secretary of the Government Operations Agency to create a Blockchain working group to examine the technology.
It also states that “for the purpose of this chapter, ‘blockchain’ means a mathematically secured, chronological, and decentralized ledger or database.” Reportedly, this definition is temporary and will expire by January 2022.
The working group will include members from within the tech industry and representatives from similar sectors. Stakeholders will be able to offer some contribution to the group, which will take the responsibility for recommending changes for California’s law.
As per the bill, the group will look into how Blockchain can be utilized by local businesses and government. The group will also analyze the risks that might come from using this technology and how Blockchain can benefit businesses and government.
The working group is also expected to examine how the technology can fit into the legislative system of the state. It will also look into “the best practices for enabling blockchain technology to benefit the State of California, California-based businesses, and California residents.”
It is known that the group has a deadline of July 1, 2002, to draft its report. The report “shall include recommendations for modifications to the definition of blockchain … and recommendations for amendments to other code sections that may be impacted by the deployment of the blockchain.”
California Blockchain Initiatives
Earlier this April, AtoZ Markets reported that 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’s Senator Robert Hertzberg has introduced the Bill 838 back in January. 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 the 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.”
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