In August, Ohio joined a small group of states that nurtured the development of blockchain technology. Governor John R. Kasich has signed a measure that allows the development of a wide range of new uses for state-of-the-art technology.
The law could further strengthen the already vibrant financial services sector of the state and stimulate further innovations in the state's economy. The development of cryptocurrencies like bitcoins is only one of the applications of blockchain technology, among many others. Less than 10 states have approved legislation focused on blockchain designed to improve conditions and attract investments.
A few days before Kasich signed the new Ohio law, the US Treasury Department issued a report with over 80 recommendations to encourage the development of fintech as a blockchain and to help the US market keep up with its European counterparts. The report also recommends that federal and state regulators create a "regulatory sandbox" to stimulate the development of fintech technologies and businesses.
It is critical that Ohio and the United States compete aggressively for fintech entrepreneurs and their technology. Fintech's global investment is increasing strongly. In the United States alone, a record of $ 58 billion was invested in the first half of this year, compared with $ 38 billion invested throughout 2017, according to a KPMG Pulse of Fintech report.
The new law is now an additional resource in Ohio's toolbox facilitates business and innovation.
The most obvious applications for blockchain technology are in the financial services sector, which represent immense opportunities for Ohio. Financial services are the second private sector within the state. Ohio is second only to New York City as a home for major US banking and insurance companies. And with 220,000 employees, the labor force of Ohio's financial services is comparable in size to the New York financial labor force and is larger than the City of London.
This is largely due to the fact that Ohio offers a growing list of benefits for existing companies based in Ohio, as well as for Fintech companies looking for a soft landing to expand. The state has no corporate income tax, a technologically advanced millennial workforce, an environment of collaborative innovation and low operating costs, compared to other digital hubs.
The new law of Ohio will further strengthen the state's position at the forefront of innovation. JobsOhio, a privately funded nonprofit economic development company, is ready to assist, including a new $ 100 million research and development grants program.
Efforts to promote the commercial and government uses of blockchain technology and the development of research and innovation communities are underway Columbus, with its Smart City initiative, and at Cleveland, where leaders propose the Blockland initiative.
Much of the discussion continues throughout the country and around the world on how to best respond to the growing use of blockchain. Many countries, especially China, Japan and some Scandinavian countries, have passed various laws that promote the use of blockchain technology in an attempt to digitize their economies.
Ohio has now joined the group to pave the way for blockchain innovators and promote the benefits they bring to industries and communities.