Ohio a Midwestern state in the Great Lakes region of the United States and the fifth largest financial services market with one of the best business-friendly tax systems in the US has become the latest state in setting up the legal framework to encourage the deployment of disruptive blockchain technology which is capturing the whole world steadily.
The state has turned out be one of the first in the US to officially recognize the use of Distributed Ledger Technology (DLT) in various industries, including financial services, real estate, supply chain management, and healthcare on Friday passing a bill in the context of a legal foundation by Ohio Governor John Kasich.
Ohio Senator Matt Dolan stated:
“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.”
However, this is not the first endeavor to provide blockchain a legal context. In May this year, Ohio Senator Matt Dolan proposed alternative bill SB300, but it flopped to progress in the state legislature. Although, parts of that bill were used as amendments in the new SB220 bill, which has been seen voted on August 3.
The approved bill establishes the definitions of electronic records and electronic signature:
“Electronic record” means a record created, generated, sent, communicated, received, or stored by electronic means. A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record to provide a safe harbor for the emerging technology.
“Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. A signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature.
With this new law and on-going stride, the state will become more appealing for blockchain-oriented companies. Now the door is open for the startups and innovators who without hesitation can focus on building new applications and products that leverage DLT, remarkably in the financial industry.
To boast Ohio’s financial market, the adoption of blockchain technology is the crucial step the Govt. has initiated where various banks and insurance firms choose to be headquartered, after New York in this context. The state has about 270,000 employees in the industry, a sign that is similar to New York’s and bigger than the city of London.