Cryptocurrency and its concept are not new. After being in the industry for more than a decade now, this investment model is growing.
Many investors today try their luck with crypto investments along with the appropriate tools that are found on the Official Website. Both newbies and experienced investors try their luck equally with this investment model. Given the market analytics, crypto investment has increased from 2019 onward. Thanks to the pandemic and global lockdown. Many people who were confined to their houses tried learning about crypto investments. There has been a much increase in crypto investment in gaming platforms also. Besides regular crypto tokens, the use of non-fungible tokens has also increased.
Adoption of crypto by global countries
Now the adoption of crypto at the individual level is increasing. This adoption is also causing a cascading effect on increased adoption in an economy. Today, the total market capitalization of crypto is at $3 trillion. The investment and adoption are only increasing and there is no downward trend in this. Both India and the US top the chart in crypto adoption. There is an increasing awareness and adoption of crypto in the industry at large.
How is California planning to embrace crypto?
Yes, yet another state to join the trend is California. The state is looking for an opportunity to embrace this investment model. The Californian governor last Wednesday approved an executive deal to this effect. The executive order is mandated to understand the pros and cons of crypto investment. The order aims to develop a transparent and regulating environment for crypto businesses. This executive deal is aimed to benefit both the crypto business and investors. It will protect its investors from any fraudulent acts and bring about a balance in the industry.
The executive order calls for collaboration between various government authorities in the state. It includes the Governor’s office and the department of financial investment and protection. And consumer services and housing agencies. All these three agencies need to come together to work on this investment model. The three regulatory authorities need to work on understanding the potential development. The developments could be in blockchain platforms and the crypto investment industry. The applications will be put to use for academic, financial, and economic advantage.
The executive order also directs the DFPI agency to regulate this investment end-to-end. The regulations need to cater to the security interest of investors. The regulations need to have a clear capture of the study and reference materials. It will also make a thorough depiction of how customer interest is protected. The various benefits along with risks need to be categorically called out. This regulation will work as the bible for any investors who will invest in crypto. The regulation is also aimed to mitigate fraudulent activities with crypto. With the number of crypto scams increasing the regulations will try to reduce it. The government aims to create awareness amongst its residents.
The governor also added that many times the global economy lags in technological advances. There is always a delay in embracing these advancements. The state is now looking at going a step ahead with these changes. The executive order aligns with the steering committee signed by the US president.
What changes can we expect?
The new regulations and policies coming in are positive news for crypto. The investment market will take on a new position. The day is not far when countries will embrace crypto as an official investment model. Additionally, with regulations in place the following benefits are also accrued:
Increase in awareness about cryptos:
Yes, many investors still look at this investment with doubt. There is a lack of trust in crypto investment as compared to other investment models. This is due to the negative reviews around crypto investment.
Increase in market capitalization and returns:
Crypto being adopted as a legal payment medium will boost its prices. This will provide better returns on investment for current investors. The prices will surge.
Increased adoption:
Other than celebrity endorsements, there will be an increase in crypto adoption. Today, there are mixed reviews about this investment. While Elon Musk endorses cryptos, Buffet is not ready to invest even $25 in Bitcoin. This creates confusion in the minds of normal investors who follow these celebs.
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