Blockchain Adoption In Washington State Is On The Rise As It Passes Blockchain Bill 5544

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Welcome back to the Tribe! In this post we dive into the Blockchain Bill 5544 that has recently passed in Washington.

Nothing should be considered investment or financial advice. Enjoy the ride!

Blockchain Bill 5544

Washington State Governor Jay Inslee has signed Blockchain Bill 5544 into law, after a turbulent 3 years and one veto from the day it was proposed. The Bill will see the state set up a working group that will research potential applications for blockchain technology.

Bill 5544

Bill 5544 has had a turbulent history through the state legislature. It was first introduced in the Senate by Republican senator Sharon Brown in 2019 but was vetoed by the governor in April of 2020.

This rejection returned the legislators to the drawing board to fine-tune the bill before releasing the final version that has been signed into law.

Specifics Of The Law

The law saw Governor Inslee order the formation of the Washington Blockchain Work Group which will “examine various potential applications for blockchain technology.”

The workgroup will help Washington continue to grow as a global leader in blockchain technology. The workgroup will comprise a range of key stakeholder groups, including representatives from the legislature, financial institutions, and trade associations. The workgroup will host its inaugural meeting by December 1, 2022, and submit a report to the Governor on its findings by December 1, 2023.

Response To The Law

The Bill was championed by State Senator Sharon Brown, with strong bipartisan support from the House of Representatives and the Senate. They also had support from Washington Technology Industry Association (WTIA), a non-profit organization dedicated to fostering a robust, equity-centered technology sector that empowers thriving communities.

In response to the passing of the bill, Sharon Brown said:

“Every day, companies are adopting blockchain technology to improve delivery of services,”

She also added that:

“This new law is a vital first-step in creating an environment that is welcoming of new business prospects, eager to seek out new applications, and willing to identify potential supply-chain management and STEM-education opportunities. I am pleased to see this legislation signed into law. By creating the Washington Blockchain Work Group we are sending a clear message that Washington is ready to start working with the private sector to advance this technology for the benefit of all Washington residents, employers and workers.”

The Cascadia region is home to hundreds of startups focused on technology leveraging the ledger system, including app development (Atra Blockchain, ArcBlock), blockchain infrastructure (Dragonchain, NEO, and ArcBlock), healthcare (Lumedic), and gaming (Mythical Games). Blockchain has also expanded to the enterprise, with Washington-based legacy companies embracing the technology, including Amazon Web Services and Microsoft Azure tapping blockchain as a service, T-Mobile leveraging blockchain for telecommunications, and Starbucks utilizing blockchain to support its supply chain and logistics.

Also responding to the signing of the bill into law, Arry Yu, Chair, WTIA Cascadia Blockchain Council said:

“Since its founding, the Cascadia Blockchain Council has been dedicated to making the region a global hub for blockchain development. Today represents a major step forward in achieving our goal,”

He further added that; “With the formation of the work group, Washington is now positioned to lead the country when it comes to blockchain and distributed ledger technology. It has been a tireless few months of work from the Council and our supporters, and it’s rewarding to see our hard work come to fruition.”

Investors for Blockchain Startups

Over the past few years, the cryptocurrency and blockchain industry has driven the digital economy forward with countless innovative developments including decentralized finance (DeFi) solutions, Web3 tools, and NFTs to name a few. While the space was initially referred to as a bubble waiting to burst, blockchain technology has so far proven doubters wrong.

This persistence coupled with continuous advancement has supposedly caught the eyes of institutional investors who are increasingly splashing the big bucks to support startups focused on solving key problems by leveraging the technology powering modern financial products like the so-called ‘magic money’ and ‘digital gold’.