The Golden State has played an integral part in the technological development of the U.S. and is home to Silicon Valley, which is regarded as not only the tech hub of America, but also the world.
The growth of cryptocurrency in America, and Bitcoin in particular, has been well documented and while its current value of around $27,000 as of September 2023 isn’t as high as its 2021 peak of $61,837.26 it still dwarfs its value from a decade ago of $131.
Some states have taken to crypto more than others and California’s tech background made it the ideal place for the decentralized currency to flourish.
California boasts the largest state economy in the U.S. and is also the biggest sub-national economy in the world, with the $3.6 trillion economy placing the state as the fifth-largest global economy.
Some of the largest tech companies in the world are based in the state, including Google, Apple, Facebook, and Microsoft. In an attempt to capitalize on its current success, and safeguard the state against future developments, Governor Gavin Newsome has moved forward with an executive order that will examine how to adopt digital assets and cryptocurrency safely.
Californian Assembly Bills 2269 and 2689, and Senate Bill 1275 already provide some framework for crypto use in the state. They also cover legislation that permits public and private entities, as well as state agencies, to accept virtual currencies as a form of payment.
Because of California’s willingness to embrace crypto, it has been identified as the state with the most searches for crypto-related queries. It is also the state with the most crypto users, beating New Jersey, Washington, New York, and Colorado.
Businesses have been quick to embrace blockchain technology as well, with more than 440 businesses in the state accepting cryptocurrency in 2022. This was the most of any state, and with additional frameworks being implemented to protect consumers, this figure is set to rise.
Consumer benefits of cryptocurrency make it an attractive proposition for many. The decentralized currency allows quicker local and international payments as well as lower transaction fees.
This has greatly improved convenience for many Californian gamblers. Because Californian state laws regarding betting are relatively strict, many people explore crypto betting options as a way to enjoy a wide variety of markets.
Being able to deposit and withdraw crypto funds to the casino quickly without exchange rates and exorbitant fees appeals to a lot of customers. Another benefit is that blockchain technology provides greater transparency, so customers can ensure online casino operators are fair in their games.
Security is another significant factor for consumers and businesses and blockchain technology uses cryptography to secure transactions. Asymmetric-key and symmetric-key cryptography are the most common types of cryptographic algorithms used to encrypt secure information.
While it is not completely hacker-proof, it is much more difficult for cyber-criminals to attack than traditional payment methods.
Because cryptocurrency is regarded as relatively volatile, many businesses are still holding off. This is because the value can change so quickly across the market.
So, those that have adopted crypto payments typically accept well-established cryptocurrencies rather than new additions to the market. For example, Gucci stores in L.A., New York, Miami, Atlanta, and Las Vegas accept 10 cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Shiba Inu.
The Bay Area of California is home to the cryptocurrencies Kraken and Coinbase and is a hotspot for Bitcoin ATMs that allow consumers to buy and sell Bitcoin easily. This level of convenience has allowed the public to embrace cryptocurrencies and businesses are taking note.
The initial buzz and viral nature of cryptocurrency appears to have died off, but this could be good news with market volatility reducing and more businesses seeing less risk in accepting cryptocurrency as a form of payment.