Blockchain technology has been a major disrupt or of the global financial space and has literally changed the way we transact things and store records. Due to this reason, blockchain technology has been finding its use in different applications within the financial space.
According to the latest Bill 838 introduced by California State Senator Robert Hertzberg, companies can now apply “Blockchain technology or one or more distributed networks” to record and keep 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 issuance’s and transfers of stock of the corporation.”
The bill was introduced by Senator Hertzberg before the Senate Banking and Financial Institutions Committee in order to establish a blockchain-based secure method for issuing and transferring corporate share certificates. This is believed to be the initial step in integrating the blockchain technology in California.
In the latest press release, Hertzberg said:
“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.”
If the full Senate approves the bill, it would then legally recognize the information like company’s stocks, including ownership to be stored on the blockchain network. Moreover, California will also join other states like Delaware and Wyoming in allowing companies to use blockchain for administrative purpose.