By
Wanguba Muriuki
July 29th, 2020
The state’s governor has signed the law aimed to validate the use of the blockchain technology in Nevada.
Nevada becomes the first state to enact laws around blockchain technology and the first to prohibit local taxation on blockchain transactions.
On March 30, 2017, Republican Senator and Assistant Minority Leader Ben Kieckhefer introduced Senate Bill 398 intended to protect blockchain transactions under the state’s Uniform Electronic Transactions Act. The bill gives correct definition to the blockchain stating that it is “an electronic record of transactions or other data which is: 1. Uniformly ordered; 2. redundantly maintained or processed by one or more computers or machines to guarantee the consistency or nonrepudiation of the recorded transactions or other data; and 3. Validated by the use of cryptography.”
The bill is actually the first document of such kind that forbids local governments to impose taxes or fees on blockchain use.
“The potential uses of blockchain are limitless, and I’m confident Nevada’s entrepreneurs will find ways to use of this technology to innovate and drive our economy forward,” Kieckhefer said. “I can’t wait to see what comes next.”
A high step ahead in the mainstream adoption of blockchain has been made yesterday when governor of Nevada Brian Sandoval signed legislation aimed to validate the use of the technology in the state. The law will go into effect immediately.
The idea of rational regulation of blockchain found strong support among some Nevada-based business leaders including Filament CEO and Founder Allison Clift-Jennings who is a leader in industrial applications of IoT and blockchain technology.
“Governments can be slow to adopt and digest this sort of technology,” Clift-Jennings said. “Nevada is setting a precedent for how states should be approaching blockchain right now. I believe it will be instrumental in attracting top technologists and startups to the state. It’s really exciting to be at the forefront of that change.”
Bitcoin and its underlying technology have been seeing governmental support in the USA.
This week, the US House of Representatives Financial Services Committee will conduct a hearing on virtual currencies. Called “Virtual Currency: Financial Innovation and National Security Implications”, the hearing will bring up such topical issues as “terrorists and illicit use of FinTech, the national security implications of virtual currencies such as bitcoin, and the use of ‘blockchain’ technologies to record transactions and uncover illicit activities”.
The General Services Administration, US agency that provides logistical support including transportation and communications services to federal agencies, announced the launch of blockchain pilot this summer. The agency is aiming to explore the potential use of the blockchain in logistics.
