Hawaii proposes bill to create a favorable environment for blockchain development

Hawaii Democratic Representatives Mark Nakashima and Chris Lee have introduced a bill that aims to create a friendly environment for bitcoin and blockchain technology, and also hopes to develop local tourism through these technologies.

The huge potential of digital currency and blockchain technology

State governments in the United States are slowly beginning to study and regulate Bitcoin and its underlying technology. Just recently, two Hawaii lawmakers introduced Assembly Bill 1481, which aims to study cryptocurrency and blockchain technology. The bill states that the state legislature has realized "the enormous potential of this technology to disrupt and improve the operations of the public and private sectors."

The two Democratic representatives plan to form a think tank on digital currency and blockchain. The members of this think tank will come from the public and private sectors, aiming to "test, educate and popularize blockchain technology, develop the best applications of this technology, and use it for local businesses, citizens and governments." The two legislators believe that this think tank can maximize the advantages of blockchain technology.

Hawaii Profits from Bitcoin

In addition to creating Hawaii’s “Blockchain Technology and Digital Currency Working Group,” they also linked the potential of Bitcoin to the tourism industry. The state’s tourists are mostly Asian, so Bitcoin usage is rising locally.

The bill states:

Digital currencies like Bitcoin can bring great advantages to Hawaii. Hawaii has a large proportion of Asian tourists, and Asia is a region with high Bitcoin usage. Therefore, Hawaii is in a unique position to explore use cases for blockchain technology. We can use this technology to create a convenient consumption model for goods and services for tourists, thereby promoting the development of the tourism economy.

The two representatives believe that digital currency and blockchain can ensure network security, improve retail, transportation and supply chain management capabilities, and develop "emerging industries such as marijuana." The bill further mentions that cryptocurrency and blockchain architecture are a "new P2P network and distributed data storage technology that can transfer the original central control to individuals or important participants."

Bitcoin and Blockchain Legislation in Various US States

In addition to Hawaii, two other U.S. states have publicly revealed digital currency and blockchain legislative plans. The North Dakota Legislature has enacted Bill 2100 to regulate Bitcoin. In addition, Arizona's Bill 2417 hopes to build a legal blockchain smart contract framework in its court system. Hawaii's digital currency and blockchain bill represents the state's close attention to this technology.

Compared to other states in the U.S., Hawaii’s legislature appears to be the most tolerant toward Bitcoin.