California legislature passes bill to set up blockchain working group

California state legislature has passed a bill that calls for the establishment of a working group focused on blockchain technology.

The bill, AB 2658, has passed both houses of the legislature and will now be sent to the governor for approval. It defines “blockchain” as “a mathematically secured, chronological, and decentralized ledger”.

According to the bill text, the Secretary of the Government Operations Agency is required to form “a blockchain working group and designate the chairperson of that group on or before July 1, 2019.”

The key focus areas for the group include exploring the uses of blockchain technology in state government and businesses, associated risks and benefits, legal implications, and best practices for the technology to benefit the State of California, California-based businesses, and California residents. For this, the group would take inputs from broad range of stakeholders.

“On or before July 1, 2020, the blockchain working group shall report to the Legislature on the potential uses, risks, and benefits of the use of blockchain technology by state government and California-based businesses,” the bill states.

Similar bill has also been passed in Conecticut which requires the Department of Economic and Community Development to study blockchain technology. Recently, the New York state legislature also advanced a bill that seeks to create a digital currency task force.