● Governor of California Gavin Newsom issues an order examining ways the state can take advantage of crypto.
● The order is in alignment with the Biden administration’s March proposal.
● Many may be skeptical about the new directive owing to cryptocurrency’s speculative security.
For more than a decade, many businesses and tech enthusiasts in California have put their money on crypto and its numerous advantages. Hopping on this train is the executive governor of California- the state in the United States with the largest economy.
On Wednesday, the governor of California, Gavin Newsom, issued an order on cryptocurrencies. In the statement, he examined ways digital assets and blockchain technology can be put to good use in the state.
CA is the first state in the nation to begin creating a comprehensive & harmonized framework for responsible blockchain technology to thrive.⁰⁰We’re aiming to create a pipeline of talent for the emerging industry & utilize the technology for public good. https://t.co/6Um0lJ9p1y
— Office of the Governor of California (@CAgovernor) May 4, 2022
The state, which is home to leaders in the financial industry like Square and PayPal, shouldn’t be lagging in new technologies and their adaptation. Gov Newson, a Democrat, said, “Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow consumers and business to thrive.”
Newsom also gave further instructions to the state’s business and economic development office, asking that they work closely with the Department of Financial Protection and Innovation and the state’s Business, Consumer Services, and Housing Agency.
The instructions intended to “create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection.”
Furthermore, the plan is structured to align with the proposal of President Biden’s administration. In March, Biden called all governors to examine the benefits and risks of cryptocurrencies.
There’s no doubt that people will be skeptical about Newsom’s plan seeing how much money is invested into digital assets. Also, there are speculations concerning the security of cryptocurrency, as last year, $14 billion worth of cryptocurrency was stolen by criminals.
According to Brookings Institution’s senior fellow in economic studies, Aaron Klein,
“California seems to be trying to walk a tightrope between moving the state forward to embrace new technology while making sure that consumers and investors are properly protected.”
According to Newsom, his executive order will make California the first state in the U.S,
“to establish a comprehensive, thoughtful, and harmonized regulatory and business environment for crypto assets.”