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Vermont Secretary of State Jim Condos and Financial Regulation Commissioner Michael Pieciak signed a memorandum of understanding on Wednesday underscoring collaborative efforts to explore the use of blockchain technology in digital preservation practices in the industry captive insurance.
The pilot program will help the state identify areas where the use of blockchain technology in regulatory and other government affairs could increase data security and reduce costs for residents and businesses doing business in Vermont, he said the DFR in a declaration.
"Technological developments offer governments opportunities to improve efficiency and transparency, reduce bureaucracy and improve services for the people of Vermont," said 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".
The Office of the Secretary of State of Vermont and the Department of Financial Regulation jointly issued a request for information on Wednesday to identify suppliers working with the state to launch a pilot program that allows new insurance companies to register with the secretary of state using blockchain technology, the statement said.
"Financial services companies are innovating at the speed of light and regulators have to keep up," Pieciak said in the statement. "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."
The pilot program, designed to test the functionality of emerging technology in state regulatory processes, will also include a review and revision of relevant statutes, rules, regulations and bulletins to facilitate the implementation of the blockchain, states the statement.
"Vermont has long been known as an international leader in captive insurance with a strong regulatory and professional community and a willingness to embrace innovation," Commissioner Captive Insurance David Provost said in the statement. "This makes the captive insurance industry of Vermont the ideal place to pilot this blockchain program."
