Delaware, one of the hottest jurisdictions for incorporating companies, and the home to some of the leading corporates plans to streamline corporate governance by promoting blockchain adoption. According to a regional media outlet, the Delaware General Assembly could soon make necessary amendments to the state’s corporate law, facilitating the inclusion of distributed ledger technology for keeping track of stock owners.
The plan to promote the adoption of blockchain technology among companies dates back to May 2016, following the proposal of the then-Governor Jack Markell. Last year Markell had explained that the state has to create a favorable regulatory environment for blockchain technology and businesses. Based on his inputs, the draft proposal for amending existing Delaware General Corporation Law was taken up by the Delaware Bar Association.
The proposal, if implemented will allow companies to legally introduce distributed ledger technology to issue and record the transactions of shares. Such an implementation is expected to bring in transparency as well as accountability to the stocks issuing process.
In addition to bringing in transparency to the corporate structures, the new regulatory policy will also help the state retain the position of being the most desirable destination for incorporation. The state currently gains revenue in tune of $1.4 billion through business incorporation fees and other taxes. In the recent days, Delaware is faced with competition from other offshore jurisdictions, which have turned out to be more attractive for businesses due to various reasons.
Innovation is one possible way for Delaware to not only strengthen its position as a favorable place for incorporation of companies, but it will also give rise to a whole new sector. Promotion of blockchain technology will see more companies working in the area to not only create solutions for the newly-created need for such technology, but it will also encourage them to set up their base in Delaware.
The increasing attention towards blockchain and financial technology solutions in the global market will put Delaware on the map of fintech and blockchain hubs.
Ref: DelawareOnline | Image: NewsBTC