Ohio is the latest leading supporter to join the blockchain technology bandwagon. On 3rd August, Governor John Kasich agreed to the legislation incorporating new usage for this cutting-edge technology. Ohio is one of the few states to adopt legislation and legally recognize the use of blockchain technology.
They focus to convey and store electronic records in a wide range of sectors, including financial services, real estate, supply chain management, and healthcare. This will raise the benefits of Blockchain such as greater information security, minimum costs with quick transactions.
Cryptocurrency like Bitcoin is just a single way to use blockchain technology. This state will officially and legally support the records and smart contracts held on the blockchain.
Ohio- The Latest State to Recognize the Blockchain Technology
This news follows lawmakers from the state in May, declared a bill to consider smart contracts and blockchain data as electronic records in a bid to offer secure harbor for the evolving technology.
According to a press release, Later the part of the wording from that bill (SB 300) was integrated into next legislation (SB200). In June, the Senate of this state finally approved the law and the governor signed this Ohio law on Friday.
Ohio’s Uniform Electronic Transactions Act will now work according to the revised version after the approval of the governor. This new legislation mentions that any contract or record which is protected by blockchain technology will be recognized as an electronic record stored in an electronic form.
Furthermore, the act also considers electronic signatures secure with the blockchain technology and legally defines under the same category as usual electronic signatures.
However, the bill passed has no same concept for smart contracts. The bill doesn’t recognize smart contracts as an electronic record. Hence, there were no amendments to the law by offering them a legal standing.
SB 300 clearly mentioned that electronic contracts cannot be denied legal influence or enforceability only “because contract consists of a smart contract’s term“. The wording would have clarified the way for smart contracts usage for legal documents within the state.
The financial services managing director at JobsOhio, Valentina Isakina says:
“In Ohio, blockchain innovators can thrive in their efforts to develop new products and applications for the financial industry and beyond. Many companies looking to expand their blockchain and R&D operations are rapidly growing job creators, and Ohio is now even more attractive to these businesses.”
Ohio has Always Been a Fast Mover
According to JobsOhio, Ohio holds 270,000 employees and stance second in New York City amongst the U.S. bank and insurance firms’ headquarters. The cities are opening their doors to businesses that rely on the emerging technology. One name is Columbus seeking its “smart city” initiative and in Cincinnati, with the “10XTS” venture.
The financial service industry at Ohio is the fifth-biggest among the states and second-leading private sector in the state.
State Senate- Matt Dolan, person to introduce Ohio bill, stated in JobsOhio release:
“In order for Ohio to compete for new investments and jobs, we must welcome innovation, new technology and advanced energy. Embracing blockchain technology is a step forward to achieve these goals.”
Ohio now follows California and Arizona, who is already working on blockchain technology-based bills. Earlier this year, the bill of Arizona was approved and passed. This bill officially supports the blockchain for transactions and data storage. California is also working on the same legislation. There are two other states- Nebraska and Florida to work on blockchain technology-based bills.
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