California in steps to adopt and regulate cryptocurrencies
The Golden State is home to Silicon Valley, so it’s natural to be one of the first in the US to move towards the innovative financial future that combines digital currencies and blockchain technology.
California, one of the most powerful economies and the center of global technological innovation, on Wednesday became the first state in the United States to officially examine how to widely adapt to cryptocurrencies and related innovations.
(Photo: Shutterstock)
Following a path set by President Joe Biden, which examines, among other things, the creation of government digital currency, Governor Gwyn Newsm signed a state order directing state agencies to formulate regulations for digital currencies, as well as to examine the integration of blockchain encoding in government operations.
Blockchain technology and evolving cryptocurrencies “is potentially creating new companies and jobs, new opportunities,” said Dee Myers, senior consultant at Newsom and director of the Governor’s Office for Business and Economic Development. “So there are a lot of opportunities. There are also a lot of unknowns in the industry so that’s another reason we want to work on it early.”
The governor’s order actually says that the state, which prides itself on being the home of Silicon Valley, should be at the forefront of understanding how to adapt to the new technologies. “Too often, the government lags behind technological advances. So this time we are ahead, and laying the groundwork to allow consumers and businesses to thrive,” Newsm said in a statement.
California has about 39 million inhabitants, and the economy is more than $ 3.1 trillion – larger than the United Kingdom and India. Nyusm said his order is a step toward making California the first state in a nation to “establish a comprehensive, considerate and harmonious regulatory and business environment for crypto assets.”
Governor Newsm (Photo: Shutterstock)
Investing or trading in cryptocurrencies has become very popular in recent years, and even more so since the corona plague began. According to data, about 16 of the adults in the US have invested, traded or used cryptocurrencies, and the percentage is much higher among younger men.
Hillary Allen, a professor of financial regulation at Washington, D.C., said California’s approach would help bring the currencies into the mainstream, but she did not think would be very good for the state’s residents. Private investors are expected to profit, while the government should look for simpler technological solutions instead of turning to those “which are inherently complex and inefficient”.
Niosm’s order, among other things, calls on the new Department of Financial Protection and Innovation – which was set up for this purpose – to respond to consumer complaints, work with crypto companies and take enforcement action when necessary. She will also post instructional materials, including tips on avoiding crypto-related scams.
The order also instructs a separate government agency to examine how best to use the blockchain to help the state and the public.
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