Doug Ducey, the governor of Arizona has signed a new legislation into law to officially allow businesses in the state to use blockchain technology to share or hold data.
The bill was initially introduced by Representative Jeff Weninger in February this year and it proposed changes in the already existing statutes in Arizona so that the law could accommodate the use of blockchain technology to hold and transfer data. The bill which was dubbed HB 2603 was passed by the Arizona House of Representatives by winning majority of the votes. A total of 56 members voted in favor of the bill being passed into law while three representatives voted against it. One of the members was absent.
The signing of the bill into law highlight Arizona’s commitment towards the adoption of new technologies. It is also one of three bills that were introduced to usher in emerging technologies in the state. HB 2601 and HB 2602 are still pending a third reading in Arizona. One of the bills seeks to prevent Arizona towns from placing restrictions on the mining of cryptocurrencies within residences while the other bill seeks to address issues such the acceptance of virtual currency as digital representation of value, as well as other issues such as crowdfunding and securities.
The blockchain technology bill has been passed amid heavy regulatory measures being undertaken by the state to recognize blockchain technology and its massive potential. The Arizona State recently passed a bill that allows the residents of the state to pay taxes through Bitcoin. A previous bill called HB 2417 which was presented in April last year was aimed at recognizing smart contracts and their enforceability.
The laws that have been reviewed in Arizona now recognize the use of blockchain technology to store data and that the data stored on the digital ledger is auditable, immutable, and can be used to provide uncensored truth. Numerous other states in the U.S have been passing legislation in favor of cryptocurrencies and blockchain technology as part of their openness to new technologies. A new law in Wyoming exempts cryptocurrencies from property taxation while cryptocurrency traders in New Hampshire are exempt from regulations involved in the transfer of money.