Hertzberg Presents Blockchain Bill in Senate Banking Committee
SB 838 would create more secure method for corporations to issue and transfer share certificates
SACRAMENTO – Senator Bob Hertzberg, D-Van Nuys, will present legislation today before the Senate Banking and Financial Institutions Committee that would enable the use of blockchain technology for certain business practices in California. Blockchain is an emerging technology that allows records to be stored and updated on multiple computers using a distributed ledger technology.
In February 2018, Forbes released its “Fintech 50” list of the top 50 financial technology companies globally, and of those 50, eleven use Blockchain technology or are connected to the cryptocurrency industry. There has been no shortage of coverage about the volatile and headline-grabbing cryptocurrency market, and blockchain is seen as the “wallet” for cryptocurrencies, it has a multitude of other practical applications across many industries.
Forbes writes that the technology has quietly disrupted the U.S. financial services industry, “changing how we invest, borrow and save; how big banks control risk; and how hedge funds analyze data and place their bets.” It also presents opportunities for voting technologies and land titles. Here in California, UCLA and Berkeley have created their own blockchain labs to explore the unharnessed potential of blockchain technology.
Blockchain represents the future of the financial industry, government contracts, stock certificates and more. Several U.S. states, as well as countries all over the world, have embraced blockchain technology as a more secure way of doing many kinds of business. Sen. Hertzberg has introduced SB 838 as a first step in introducing the technology in California in a limited capacity. The bill will establish a secure method to issue and transfer corporate share certificates.
“The world around us is changing, and government must adapt with these rapidly evolving times,” said Sen. Hertzberg. “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 it succeeds today, SB 838 will next be heard in the Senate Judiciary Committee in early May.
Media Contact: Katie Hanzlik
Senator Robert M. Hertzberg
Capitol Building, Room 4038