The future of cryptocurrencies in the 50th US state Hawaii looks bright after a recent revelation. According to a press release posted on Tuesday, Hawaii has introduced a new digital currency sandbox initiative aimed at winning over cryptocurrency companies. The state also hopes to become the bellwether of cryptocurrency adoption in the United States.
Hawaii Introduces Sandbox Initiative To Entice Cryptocurrency Businesses
On March 17, Governor David Ige of Hawaii revealed that the state will soon be open for crypto business following a sandbox initiative dubbed “Digital Currency Innovation Lab”. The initiative is a collaborative effort between the Department of Commerce and Consumer Affairs, Division of Financial Institutions (DFI) and Hawaii Technology Development Corporation (HTDC).
The pilot program is expected to run for approximately two years and the profound knowledge acquired during this time will lay the groundwork for future crypto-friendly regulations in the state.
Moreover, during the 2-year period, cryptocurrency businesses will be allowed to go on their normal operations without being required to apply for a state money transmitter license.
It should be noted that the crypto companies selected for this initiative will undergo rigorous review to make sure that they uphold the rights of consumers in Hawaii and they have enough capital and expertise to set up shop in the state.
The application window for the crypto companies interested in the program will close on May 1. These companies will be expected to pay a $500 non-refundable application fee and an additional $1000 participation fee for every term.
Hopes Of Becoming An Early Cryptocurrency Adopter
Although the state of Hawaii had not particularly banned crypto businesses in the past, prominent companies like Coinbase had been forced to terminate their services to their Hawaii customers due to ridiculous cryptocurrency policies. In particular, the state demanded that crypto companies adhere to the policy of holding cash, equivalent to the crypto holdings of their customers.
This requirement proved to be too unbearable with several other crypto-centric businesses steering clear of Hawaii. However, the acting executive director of HTDC, Len Higashi, is optimistic that the state will implement the lessons learned during the pilot program and lead the country to become “an early adopter” of cryptocurrencies.
“By spearheading the Digital Currency Innovation Lab, Hawaii can position itself on the forefront of financial technology and potentially, reap the economic benefits that accompany the leadership stance taken.“
Although HTDC noted that after the two-year pilot period all cryptocurrency transactions must be concluded, the success of the pilot program could result in Hawaiian regulators formulating more friendly policies for cryptocurrency businesses. Such a scenario will usher in a new era of crypto adoption in the beachy state of Hawaii.
