Gavin Newsom’s executive order on digital assets aims to bridge the gap between California businesses and blockchain technology.
California To Be Blockchain Hub ?
California Governor Gavin Newsom signed an executive order on Wednesday to begin the process of developing a regulatory strategy for so-called Web3 firms, which include cryptocurrency exchanges, and to analyze how blockchain technology might be used to benefit the state and public sector.
It is the goal of the executive order to consolidate the regulatory regime for blockchain between both the federal government and each individual state in the United States while also encouraging innovation in the blockchain industry. Executive Order N-9-22 and the California Consumer Financial Protection Law, according to the state’s governor’s office, would allow the state to “promote responsible innovation, enhance California’s innovation economy, and safeguard consumers,” the governor’s office said on Wednesday.
Additionally, the directive wants to “establish a clear regulatory and business climate for Web3 companies,” which include blockchain and financial technology companies.
The strong gains associated with cryptocurrency assets such as Bitcoin and Ethereum (ETH) have not deterred many experts and investors from considering the asset class to be dangerous. Aiming to educate consumers about the hazards involved with investing in cryptocurrencies, such as volatility and lack of liquidity, governments have attempted to educate populations throughout the world in the past.
Blockchain provides the fundamental transparency of a decentralized yet publicly available ledger by allowing transactions to be recorded in real time. Other forms of information, such as land registry, can be recorded using the technology as well as personal information. The records are stored on a large number of computers that are linked together to form a worldwide network, making them inaccessible to anybody or any institution.
Even among some of the world’s wealthiest individuals, there is strong dispute over the legitimacy of cryptocurrencies in general. Elon Musk is a staunch advocate of Dogecoin, while Warren Buffet recently stated that he would not be willing to spend $25 for all of the world’s Bitcoin, the most widely used cryptocurrency. At the time of writing, one Bitcoin is worth approximately $38,000.
It is vital that we interact early with business and start understanding the merits and downsides of novel technologies early, said Amy Tong, secretary of California’s Government Operations Agency. We might take the next steps toward getting ahead of the curve and utilizing the potential of these technologies to improve the performance of government institutions.
Quotes
In the official statement released, California Governon Gavin Newsom said: “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. 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 opportunities are almost endless. We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identities and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent,” Myers concluded.
President of the United States of America, Joe Biden, signed the White House’s first executive order on digital assets just two months ago. The statement acknowledged the emergence of cryptocurrencies over the previous several years and explained how they may help the American community as a whole, as follows: “The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier.”
Although the order recognized that the use of cryptocurrency masks its dangers, it also stated that investors should be provided with the utmost level of safety when investing in the asset class.
