In this present world where a number of countries and companies are adopting blockchain technology then why Illinois, which is a state in the Midwestern and Great Lakes Regions of the United States, will remain lag behind. This Midwestern state, Illinois, has just recognized smart contracts and other blockchain-based records as legal instruments.
The state’s ‘’Blockchain Technology Act’’ came up with some potential new legal scenarios for blockchain-based contracts, which are acceptable as evidence in court. According to the law a smart contract, record or signature may not be denied legal effect solely since a blockchain was used to create, store or verify the smart contract, record or signature. The legalization of the blockchain technology has been done in such a manner that it is recognized as legally binding in the eyes of the state.
As a result of the act that has been passed entitled blockchain industry in such a manner that cities and towns cannot impose taxes and regulations or require licensing or permits on blockchain systems. With the new law, individual community members and businesses don’t have to navigate a patchwork of local blockchain regulation. The law made companies and businesses embrace the technology indeed and its backers in the Illinois State legislature hailed the bill. Now companies can develop new uses for the technology with freedom as they have legal certainty. But reportedly, companies could face legal challenges because the law’s wording is vague in places. Another thought comes with frustration that the law of the state’s, Illinois, success can be hindered by its borders because the law passed didn’t mention something about different states will do it. As a result of this, neighboring states are puzzled about whether they have legal certification to deal in cryptocurrency with Illinois. So Illinois’s new is really a positive sign for blockchain industry but it’s law yet has some pitfalls to rectify indeed and hopefully they state will look into it.