Everything’s bigger in America: Digital currencies in the US

Continuing with our series of articles about the progress of adoption in different territories, and after the lovely reception our article on digital currencies in Europe had, we bring you the lowdown on the US of A.

The tide may be turning for federal legislation

One of the main obstacles for adoption in the US has been Congress’s reluctance to validate any currency that could constitute competition for the almighty dollar. The US Dollar is and has been the world’s reserve currency for many years, and there’s very little political incentive for authorities to make any move that would risk that status.

However, things may be changing. In the midst of the COVID19 crisis, several bills have been introduced in the House that contemplated the creation of a centralised digital dollar as a way of getting relief packages to people. While none of the bills passed, the Overton window seems to have decidedly shifted on the subject. We should also keep in mind that China is definitely moving forward with their own project. Nearly 90% of international trade in 2019 was in Dollars. If China’s digital currency is successful, and it starts eating into that number, other governments’ hands may be forced, especially the US.

Of course, not all news is good news

While it is true that legislation for a centralised digital currency may be happening in the foreseeable future, the scenario for decentralized digital currencies may not be so rosy. A lot of the current administration’s plans have been put on hold by the pandemic, but before its effects were felt, there was a lot of talk about stricter regulation coming out for digital currencies.

It is known that the blockchain and digital currencies community is always waiting eagerly for news about regulation. Smart and friendly regulation is necessary to legitimate the field and bring in more use cases, especially large ones, but overly restrictive environments can stifle growth. The situation in America is still largely undecided. The next administration, which will be sworn in next January, will probably play a huge part in the future of blockchain in the States.

Individual states are moving much faster

More than 70% of American states have already passed legislation specifically aimed at digital currencies and blockchain. Wyoming already recognizes digital currencies as money. Ohio even allows taxpayers to pay their taxes using them.

This is often the case in the United States, where partisan gridlock can be quite difficult to overcome in Congress, and state legislatures are much more effective in pushing their agenda.

Americans are pushing adoption, regardless of government

Despite Congress’s pussyfooting on the subject, the American people are clearly all in on digital currencies. Based on the latest survey, up to 36.5 million Americans may own at least one form of digital currency. This means that twice as many people own digital currencies in 2019 (14.4%) than they did in 2018 (7.95%).

This is tremendous, sustainable, growth, especially once you consider that awareness of Bitcoin has increased from 77 to 89% in 2019.

Use cases have also grown. Every day we are getting more news of stark economic times ahead for the US, with digital currencies always appearing as a decisive alternative to more traditional investment options. Binance US has reported that a stunning number of people have deposited their $1200 stimulus checks directly into digital currencies.

Banking is starting to get onboard

Another quite significant recent development for digital currencies in America has been the banking industry’s apparent quiet acceptance of the future. JP Morgan Chase made headlines recently because not only have they started accepting Bitcoin businesses for banking services, they have also created their own coin. And they are not alone, with other banking institutions following suit, such as Signature Bank.

Libra will shake things up

While there has been significant blowback against Facebook’s massive Libra project, it will still be the first digital currency to have the full backing of one of the tech industry’s true giants. One of the known hurdles to the adoption of blockchain technology is the lack of huge successful use cases that convince people of its viability. Libra will provide that, and it could even push national governments to finally move forward with their own digital currency projects.

But Libra doesn’t exist in a void. The simple fact that it’s coming has opened the door for other projects, like Celo, which is pegged to the US Dollar. Utrust is part of Celo’s Alliance for Prosperity, and we are actively invested in making this happen.

The emergence of these USD-pegged stablecoins could be a decisive step for adoption in America. Maybe beyond.

So what’s next?

The future is extremely bright. All signs are pointing up for digital currencies in the US, and at this point, at Utrust, any doubt we might have had about adoption in America are gone.

And we are a part of that fight.

We may be based in Europe, but our entire philosophy is about borderlessness, and adoption in America is a big part of adoption everywhere.

This is why we are waiving our fees for new businesses who start accepting digital currencies. For three months, you pay 0%. We are making this happen, and you are going to want to be involved.

Now is the time for your business to empower itself and join the future. Adoption waits for no one, and this untapped market won’t remain that way for long.

Head here, join us now, and make sure you don’t miss this opportunity.