One of the world’s largest economies has officially begun the process of adopting blockchain and digital asset technologies.
The US state of California is the fifth-largest economy in the world, with a gross domestic product (GDP) greater than the UK and behind only China, Japan and Germany.
It is also home to Silicon Valley and the headquarters of the majority of the world’s largest tech companies, including Google, Facebook, Microsoft and Apple.
Its Governor Gavin Newsom has signed a blockchain executive order to begin examining how to adopt cryptocurrency and other digital asset technologies into its economy and services ‘while protecting California consumers’.
It follows President Joe Biden’s recent call for state agencies to follow the federal government to craft regulations for digital currencies.
“California is a global hub of innovation, and we’re setting up the state for success with this emerging technology – spurring responsible innovation, protecting consumers, and leveraging this technology for the public good,” said Governor Newsom.
“Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive.”
The notoriously volatile crypto asset and blockchain industry surpassed a $3 trillion market cap last November and currently sits below $2tr.
According to research, roughly 16% of adults have invested in, traded or used cryptocurrencies. Meanwhile late-stage post-money valuations for venture capital-backed blockchain and crypto asset companies have increased on average 91%, to $3.95 billion, according to PitchBook data.
The order will seek to create a transparent and consistent business environment for companies operating in blockchain; create a regulatory approach to crypto assets, exploring and establish public-serving use-cases; and build research and workforce pipelines.