There’s simply no denying that cryptocurrencies are taking the world by storm and despite recent scepticism globally as to whether or not it should be banned, regulated or left alone, it’s continuing to work its way through news regardless. Rising above the scepticism, however, are governments, states and even countries that are proving to be more than willing to take on cryptocurrencies in one way or the other, and California is amongst some of the most prominent. Here, we’re taking a look at the steps California are taking towards accepting cryptocurrencies as standard, and how this could affect the markets and the rest of the USA.
Taking The Lead
California, alongside New York, is easily listed as one of the leading forces behind cryptocurrency adoption in America. For most governments, there are particular areas that are of the most concern, including the use and status of smart contracts, the use of cryptocurrencies in online trading or business transactions and imposing authority on online cryptocurrency exchanges to ensure fair and just activity. However, many states within the USA still haven’t started moving towards this kind of regulation. California, on the other hand, is well on its way to this kind of regulation and even houses a number of cryptocurrency-focused businesses.
Silicon Beach & Silicon Valley
Home to Silicon Beach and Silicon Valley, California has its fair share of start-up companies in a range of different industries, but none more so than the Tech and FinTech ones. Without these areas dedicated to the production of new technologies and development of existing ones, cryptocurrency use within everyday life probably wouldn’t be possible. California’s hubs for this kind of activity give the State a position as a hotspot for cryptocurrency businesses, which is just one reason as to why they’re leading the industry battle right now.
Defiance
The city of Berkeley in California has always been known for its radicalism and counterculture, particularly in the 1960’s. Despite going quiet for a while, the Trump administration has certainly woken them up again and while their focus tends to be on any legislation Trump puts into practice, cryptocurrencies and ICOs have been no exception. Despite policies banning such a thing, Berkeley are looking to start an initial coin offering by creating their very own token. This alone could trigger similar resistance across the country, if not just in California, and open up cryptocurrency use across the entirety of the USA.
Small Steps, Big Effects
Despite the above points, it’s the smaller steps that can also make all the difference. For example, Coinme, a financial services and blockchain technology company, have recently put out eight new ATMs for cryptocurrencies in California. This isn’t the first time, either! In fact, Coinme has 23 ATMS across California, making this state one of the best for easy access to crypto funds. Of course, this isn’t the only move that has proven California is crypto-friendly – Propy Inc, a company dedicated to cross-border real estate, is selling a 27-acre piece of land and accepting cryptocurrency as payment. While this isn’t likely to devastate or skyrocket the market alone, this could be the first step towards regular cryptocurrency payments.
Could This Trigger The Rest Of The USA?
Due to the decentralised nature of cryptocurrencies, any one payment can have an effect on the market. While a single purchase isn’t likely to crash the market, as we mentioned before, an increasing number of payments within California could change the market as we know it. Purchases give cryptocurrencies their value, and this value will change and fluctuate depending on the volume of purchases at any one time.
This volatility is what can put a lot of states off of using cryptocurrencies as a regular form of payment, but it’s important to remember that if one state can take steps towards cryptocurrencies, others certainly could too. With a sturdy foundation like California’s Silicon Beach and Silicon Valley, other states could take California and New York’s lead and start to develop a cryptocurrency industry of their own.
