ASSEMBLY SCIENCE, INNOVATION AND TECHNOLOGY COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 320

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED:  FEBRUARY 22, 2021

 

      The Assembly Science, Innovation and Technology Committee reports favorably and with committee amendments Assembly Bill No. 320.

      As amended and reported, this bill requires the Department of the Treasury to review and approve a viable blockchain-based, digital payment platform to provide payment services to legal and licensed businesses in this State that do not have access to traditional financial services and are forced to operate in cash-only or cash-heavy environments. The purpose of the payment platform is to provide a safe, secure, and compliant system that does not exclude these businesses from participating in digital commerce.

      The bill requires the payment platform to provide businesses with access to cashless transactions and to secure revenue on a one-to-one basis of virtual currency to United States dollars. A business is to only have access to the payment platform with approval from the State.  The payment platform is to provide the ability to manage and process all business expenditures and allow all transactions to be recorded on an immutable blockchain ledger. The payment platform is to facilitate regulatory compliance, provide for audits by the State, and allow for payment of sales tax to local municipalities.

      This bill was pre-filed for introduction in the 2020-2021 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.

 

COMMITTEE AMENDMENTS

      The committee amended the bill to provide that the Department of the Treasury is to review and approve the blockchain-based, digital payment platform.