Rhode Island is on track to join blockchain-friendly jurisdictions after they introduced a bill on leveraging this tech for economic growth. The state’s goal is to create a sustainable ecosystem that will allow innovations around distributed ledgers to thrive.
This bill was tabled on March 11 by two GOP policymakers and partly read that;
“The state of Rhode Island understands that to compete in the twenty-first century economy, Rhode Island must offer one of the best business environments in the United States for blockchain and technology innovators, and should offer a comprehensive regulatory technology sandbox for these innovators to develop the next generation of digital products and services in Rhode Island.”
The State of Rhode Island plans to establish grounds for collaboration between private and public entities with interests in blockchain technology. In doing so, they are hopeful to consolidate ideas for spurring economic growth through emerging tech. One of the practical approaches to this includes forming ‘an immutable interagency-industry-operability blockchain filing system.’
Blockchain Banks and Hemp Supply Chain
The bill noted that the current legal framework has been a big challenge to blockchain-based projects looking for financial intermediary services. This is mainly because a large number of banks are skeptical given the US Fed and SEC are yet to issue clear guidelines. Rhode Island, however, suggested a solution to this shortcoming;
“A new type of Rhode Island financial payments and depository institution that has expertise with customer identification, anti-money laundering, and beneficial ownership requirements.”
Ideally, the financial institution should provide custodial services for both traditional and digital assets within the state’s compliance scope. Rhode Island has since formed an advisory council comprising 13 people who are expected to look into blockchain tech in detail on behalf of the state.
Another proposition by this bill was the integration of blockchain within the supply ecosystem of hemp products. According to the bill, such an initiative would ensure that there is accountability, product safety and legal compliance in this booming market. Furthermore, hemp derivatives that are not fit for the public would not make it to the blockchain.