California to make it Easier for Companies to Use Blockchain for Administrative Purposes

During the last couple of years, the United States has been actively looking towards implementation of blockchain technology. Recent reports now indicate that California is likely to become the newest U.S. state that allows companies to store various types of data, on a blockchain network.

The Bill 838 has been introduced by Robert Hertzberg back in January, and recent filings showcase that the bill is now advancing. With this in mind, the State Senate Banking and Financial Institution Committee talked about the bill, and advanced it using a ‘do pass’ recommendation. If approved, the California Senate will then vote on the bill.

If it becomes law, then this means that companies will also be able to store stockholder data, alongside with information on company stocks, and ownership. Better said, the bill will: "allow 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."

According to Senator Hertzberg, "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."

Approval of the bill will also mean that companies will be able to use blockchain technology for other administrative purposes, apart from simply storing information on the public ledger. In the long run, blockchain adoption at this level will improve security for companies, while also making it easier to pull up information on stockholders.

Based on everything that has been outlined so far, once the bill is approved, California will join Colorado and Wyoming, which have also made legislative efforts in this direction.