Testimony Supporting SB 5638: Recognizing the validity of distributed ledger technology
Testimony and video of the Washington State House Innovation, Technology & Economic Development Committee hearing on a blockchain bill
On 2019 March 19 the Washington State House Innovation, Technology & Economic Development Committee held a hearing on a blockchain bill, SB 5638: Recognizing the validity of distributed ledger technology, sponsored by Senators Sharon Brown, Ann Rivers, Randi Becker, and Shelly Short. Arry Yu, Alvaro Jimenez Jimenez, Joe Honan, and myself testified in favor. Dmitry Shelkov and Brian Carvajal came to support us.
Watch the video of the hearing here. My testimony starts at 40:00.
Chair, members of the committee: My name is Brock Freeman, and I am the Seattle and Northwest U.S. Regional Chair for the Foundation for International Blockchain and Real Estate Expertise (FIBREE). I am speaking today in support of SSB 5638.
There are numerous examples of leveraging blockchain technology in real estate. However, in my short time today I want to call your attention to two specific examples, and how they benefit business and consumers in Washington.
The first example is property title management. Currently, we face high title insurance and related costs due to chain of title and lien recording issues on a high percentage of properties, and fraud risk that Deloitte estimates costs $1 billion annually.
Use of blockchain technology can reduce fraud and simplify the process of title records and checks, this can shrink the time required to record conveyance documents by half. Last fall Vermont enacted S.269, mandating the review of blockchain technology usage for the recording of land records and other public records.
The second example is real estate asset backed blockchain based smart securities. The advantages are mitigation of the illiquid nature of real estate investments, increased transparency, enhanced security and simplified management, as well as legal compliance.
Lowering the barrier for commercial real estate investment opens up this opportunity to a far greater number of Washingtonians. It makes it easier for people to invest right in their own neighborhood and town, increasing the funds available in Washington.
In light of these examples of how blockchain technology in real estate benefits business and consumers in Washington, I encourage your support of SSB 5638, Recognizing the validity of distributed ledger technology.
Thank you and I am available for questions.
