Vermont Launches Blockchain Pilot for Captive Insurance Industry

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Vermont continues to strengthen its spot as a blockchain leader in the United States.

After signing a memorandum of understanding to explore the possible uses of blockchain technology in the captive insurance industry’s recordkeeping practices, Vermont Secretary of State Jim Condos and Department of Financial Regulation Commissioner Michael Pieciak issued a Request for Information from vendors that could help Vermont launch a pilot program allowing new captive insurance companies to use blockchain technology to register with the Secretary of State.

"Financial services firms are innovating at lightning speed and regulators have an obligation to keep up," said Commissioner Pieciak in a statement released to the press on January 11. "This partnership with the Secretary of State provides a great opportunity for our teams to become better acquainted with distributed ledger technology and understand how the state and Vermont businesses might benefit."

The program would test the use of emerging technologies like blockchain in state regulatory processes,  review statutes and regulations to identify opportunities to ease blockchain implementation, and locate other areas within state government that could benefit from the data security and reduced expense that blockchain technology provides.

Questions related to the RFI are due on January 24, 2019 and the RFI is due on February 14, 2019.

For more information about the state’s actions, visit Coindesk and Cryptnus.

Katie Taylor