Colorado Passes Bill to Encourage DLT Use
The State of Colorado passed a bill that supports the use of distributed ledger technologies for various use cases.
The State of Colorado passed a law on May 7 that encourages the implementation of blockchain. The bipartisan Senate Bill 86 sets the standard for the use of cyber coding cryptology for state records. According to the bill, the state’s department of state should rely on research, development, and the adoption of encryption and data integrity methods, including distributed ledger technology, as blockchain is also called. The bill recommends applying the technology when “accepting business licensing records and when distributing department of state data to other departments and agencies.”
Blockchain-oriented startup Filament revealed that it had collaborated with Senators Williams and Kent Lambert and Representatives Joann Ginal and Robert Rankin to establish the legal framework for the technology.
Filament CEO Allison Clift-Jennings said:
“Filament has a strong presence in Colorado, and we are committed to furthering the benefits of blockchain technology in both the public and private sector.”
“With the passing of this bill, Colorado has demonstrated that it understands distributed ledger technology and is interested in giving businesses the space they need to innovate as applications of the technology continue to emerge,” she added.
The bill calls for regulatory agencies to consider the technology to stay safe against falsification, handle hacking threats, and support internal data security levels. In addition, it suggests that universities in Colorado might include courses and R&D activities on blockchain.
Colorado Senator Angela Williams commented on the bill:
“Colorado is an entrepreneurial state and this bill recognizes the vast opportunity of blockchain technology. It will ultimately shape a better future for Colorado's students, entrepreneurs, and government alike.”
According to the bill, the expanded use of DLTs may ensure a transformation regarding data security, transparency, accountability, and safety across dispersed state departments and jurisdictions.
The bill notes the following benefits of DLT:
- Reducing fraud and the malicious infiltration of state-backed programs;
- Allowing the use of data with proof of origin;
- Supporting the verification of authorized entities;
- Reducing device spoofing and data falsification;
- Protecting personal privacy data;
- Helping the state government cut costs;
- Ensuring quantifiable risk and quality rating capability
Meanwhile, in the southern state of Louisiana, the City-Parish President of Lafayette Parish revealed that the parish might have its own cryptocurrency soon.