Cryptocurrency

California Governor’s Executive Order for Cryptocurrency Inked

California Governor's Executive Order for Cryptocurrency Inked

The California governor’s executive order for cryptocurrency was recently signed by the US state’s head of government, Gavin Christopher Newsom. This rule has the force of law and affirms California’s intent to embrace virtual currencies.

 

We are interested to learn about the recently signed law, the California governor’s executive order for cryptocurrency, which is now in force. We think our readers will also find this latest report about the rule relevant, especially if they are California residents.

 

According to the news posted online by US newspaper The Los Angeles Times, Newsom has signed the executive order for virtual currency. This rule is meant to facilitate the cryptocurrency industry’s growth in the US state.

 

Moreover, the California governor’s executive order for cryptocurrency discussed the necessity to be proactive. In this manner, new technologies’ unintended social consequences and the uneven opportunities across communities can be averted.

 

Furthermore, the California governor’s executive order for cryptocurrency elaborated on how the US state of California has laid the groundwork to aid in regulating virtual assets. Newsom’s new rule intends to make a consistent and transparent business environment for enterprises operating in the blockchain sector.

 

The California governor’s executive order for cryptocurrency has its critics. They said that this new rule did not emphasize that the cryptocurrency industry is detrimental to the environment.

 

Additionally, the pundits argued that the California governor’s executive order for cryptocurrency included minimal details regarding the virtual currency sector’s environmental impact, which they stressed as its major downside.

 

The precepts about the cryptocurrency industry’s environmental effect came up twice in the California governor’s executive order for cryptocurrency. The first one is when the rule discussed the necessity to form a business environment incorporating California values like environmental protection, equity, and inclusivity.

 

The other instance is when the California governor’s executive order for cryptocurrency indicated the requirement to consider input from stakeholders likely concerned about possible negative externalities, including environmental effects and energy consumption.

 

Alex Stack is the Deputy Communications Director at the California governor’s office. He talked about energy consumption from Bitcoin transactions.

 

Stack remarked that the California governor’s office is still early in the process of establishing a cryptocurrency framework.

 

Newsom’s spokesperson also affirmed that his team is definitely prioritizing safeguarding the environment, although the California governor’s executive order for cryptocurrency did not explain this aspect in detail.

 

We agree with the critics of the California governor’s executive order for cryptocurrency. The rule should have emphasized the virtual currency industry’s energy factor more.

 

We want to stress that the proof-of-work process involves cryptocurrency miners who use their computers to race and solve a complex mathematical puzzle that verifies the blocks and approves consumers’ transactions.

 

The miners who solve the intricate mathematical puzzle first get rewarded with Bitcoins. In this process, many computers attempt to resolve the puzzle and are the reason Bitcoin needs considerable energy amounts.

 

Additionally, a single Bitcoin transaction utilizes a similar amount of power that the average American household uses in one month, per cryptocurrency environmental sustainability portal Digiconomist.

 

The latter also reported that one transaction is responsible for roughly a million times more carbon emissions than one Visa transaction. We understand that California is eager to adopt crypto-assets.

 

Nonetheless, we recommend considering virtual currencies’ environmental effects and highlighting them more in the California governor’s executive order for cryptocurrency.

 

In this manner, the forward-thinking US state’s consumers can have a seamless and Earth-friendly experience of using virtual currencies in their day-to-day activities.

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