California set to become cryptocurrency flagbearer in US
- California will work on regulations that allowed existence of digital currencies
- Officials say the initiative will create new opportunities
- Biden previously instructed the Federal Reserve to consider a nationalised digital currency
An executive order from Democratic governor Gavin Newson instructed Californian authorities to form regulations for an economy that co-exists with digital currencies. The initiative will also attempt to merge blockchain computer coding with administrative operations.
Dee Dee Myers, the head of California's Office of Business and Economic Development, said that technology linked to cryptocurrency and blockchain "is potentially an explosive creator of new companies and new jobs and new opportunities", Associated Press reported.
Myers, who is also a senior advisor to governor Newson, added that the initiative presents a flurry of opportunities in the state. "There are also a lot of unknowns in the industry and so that is another reason we want to engage early", she said in a statement.
California, home to Silicon valley, has a tech-rich economy that is estimated to be around $3.1 trillion. The state has about 39 million residents.
Newsom said his order is a step toward making it the nation's first state “to establish a comprehensive, thoughtful, and harmonized regulatory and business environment for crypto assets", according to reports from Associated Press.
United States President Joe Biden previously passed an executive order and asked the Federal Reserve to evaluate the feasibility of creating a nationalised digital currency.
About 16% of the adults in the United States have already engaged with cryptocurrencies through investing, trading or mining, Associated Press reported.
There is heavy disagreement about the legitimacy of cryptocurrency, even among some of the world's richest people.
SpaceX and Tesla CEO Elon Musk is an avid supporter of dogecoin while Warren Buffet recently said he would not pay $25 for all of the world's bitcoin, the most popular cryptocurrency. Each bitcoin is currently valued at about $38,000 but fluctuates wildly.