After New York City, Charlotte is the second-largest financial services center in the United States. As North Carolina grows, so does its financial sector. Charlotte has not only found traction in banking but has also become an epicenter for fintech and for digital assets. Coinbase, the largest crypto exchange, moved to Charlotte last year, drawing hundreds of new jobs to the area.
Financial experts say this growth is not accidental, as North Carolina was the first state to define digital currencies, in 2016. Since then, North Carolina has been one of the leading states when it comes to adopting digital currencies in finance and technology. A bill has passed the North Carolina House to allow state Treasurer Brad Briner to invest in cryptocurrencies. This comes as the treasurer announced he is committed to diversifying investment to boost the lagging state pension fund.
It is amidst this backdrop that the panel entitled “Digital Assets: How North Carolina Can Continue to Lead in the Next Generation of Finance” was held at the John Locke Foundation’s Carolina Liberty Conference.
The panel featured state legislators and industry leaders who have led on digital assets. Panelists included state Reps. David Willis, R-Union; and Mike Schietzelt, R-Wake; and industry professionals like Eric Peterson, the senior manager of policy and government relations at cryptocurrency exchange platform Kraken; and Dan Spuller, the executive vice president of industry affairs for the Blockchain Association.
The panel focused on how North Carolina can best capture the growth in digital assets, both in North Carolina and nationwide.
They first discussed stablecoins, a digital asset that is designed to maintain a stable value by pegging it to a reserve asset. In the past year, stablecoins have exploded in the United States after the passage of the Genuis Act on the federal level, which creates a regulatory framework for stablecoins.
The panel said no state has benefited from this more than North Carolina. After the passage of the Genuis Act last year, Tether, the largest stablecoin, with a market capitalization of $169 Billion, moved its US headquarters to Charlotte.
“I believe that more companies like Tether will move to Charlotte and North Carolina after we pass our own stablecoin law,” Spueller said.
The panel then shifted to the future of digital assets in North Carolina more broadly.
“What I’m excited about is finding institutional alignment,” said Schietzelt. “We don’t want to lose the decentralized character of digital assets, but we do have to provide regulatory and institutional alignment to ensure that people aren’t getting scammed.”
Building off that point, Willis ended the panel with his wishes regarding the future for North Carolina and digital assets.
“Create the open marketplace for new [digital assets] companies to move and thrive in North Carolina,” Willis said.
As North Carolina continues to grow as a financial capital, digital assets will be a major factor. In the upcoming legislative session, it appears that some state legislators will move to create a secure but open market for digital assets in the state.
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