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Washington State Declares DLT as Legally Valid

Blockchain and Distributed Ledger Technology (DLT) adoption are on the rise, however this time it has won a bigger battle in the legal system where Washington State has declared DLT as legally valid. The state of Washington decided to advance on legalization that officially recognizes the use of technology in the state as legally valid.

The bill SB5638 to validate and legalize DLT was introduced earlier this year by Senators Brown, Rivers, Becker and Short. The bill was defined as “an act relating to recognizing the validity of distributed ledger technology.” The Bill got a thumping response with 46 votes in favor, 0 votes against it, 2 absentees and 1 excused.

The main aim behind the bill was to combat mistrust towards the DLT-based network and technologies related to the blockchain.

“The legislature intends to encourage the development of distributed ledger technology. It further intends for this chapter to comply with 15 U.S.C. Sec. 7002 and here makes specific reference to chapter 96 of Title 15 of the United States Code. An electronic record may not be denied legal effect, validity, or enforceability solely because it is generated, communicated, received, or stored using distributed ledger technology.”

The Future is Decentralized

The legal validation is for sure a thing to rejoice, however, the use and adoption of the technology is already at an all-time high, be it healthcare sector, supply-demand chain, entertainment and what not, DLT is helping everyone to get past the hurdles which were there due to the use of traditional centralized systems.

If we look at it from a legal point of view, not just America but even many European countries have decided to validate DLT and bring it under the law to make it more reliable and safer for the service providers to use. In fact, the state of Ohio has also made it legal for the citizens to pay their taxes in Bitcoin and many cooperations are actually doing it as well.

Even countries like China where there is a complete crypto ban, blockchain, and DLT are legal and being implemented in various sectors around the country.