Vermont Business Magazine On 9 January 2019, Mr Michael Pieciak, Secretary of State and Conditioner of the Finance Department, has signed a memorandum of understanding outlining their collaborative efforts to explore emerging blockchain technology and its use in captive insurance digital preservation practices.
The Office of the Secretary of State and the Department of Financial Regulation jointly issued a Request for information (RFI) on January 10, 2019 to identify suppliers that may collaborate with the state to launch a pilot program that allows new insurance companies to be registered with the Secretary of State using blockchain technology. The pilot program is designed to test the functionality of emerging technology in state regulatory processes. The pilot project will also include a review and revision of relevant statutes, rules, regulations and bulletins to facilitate the implementation of blockchains.
"Technological developments offer opportunities for the government to improve efficiency and transparency, reduce bureaucracy and improve services for the people of Vermont," said Secretary Condos. "This pilot project will allow us to examine whether the application of blockchain digital record keeping technology can improve aspects of the state regulatory process".
"Financial services companies are innovating at the speed of light and regulators are required to keep up," said Commissioner Pieciak. "This partnership with the Secretary of State offers a great opportunity for our teams to learn more about the technology of distributed accounting books and to understand how state and Vermont companies can benefit from it."
Blockchain or similar digital technology is designed to create transparent and validated transaction logging, while providing greater efficiency, accuracy and security for users than traditional archiving methods.
Vermont is the world leader in captive insurance for written awards and the third in the world with active licenses.
"Vermont has long been known as an international leader in the captive insurance industry with a strong regulatory and professional community and a willingness to embrace innovation," said Commissioner Captive Insurance David Provost. "This makes the captive insurance industry of Vermont the ideal place to pilot this blockchain program."
The pilot program will help the state identify areas where the use of blockchain technology in regulatory affairs and other government sectors can increase data security and reduce costs for residents and businesses doing business in Vermont.
The adoption of this emerging technology could produce significant benefits as a more efficient administration of their respective duties, maximizing the value of the tax payer for Vermont citizens.
The questions relating to the RFI are expiring on January 24, 2019 and the RFI is scheduled for February 14, 2019.
Source: DFR 1.10.2019. chirping, Facebook, is website.
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