State lawmakers want to attract Bitcoin miners to Illinois

Key Takeaways:

• With over 20 cryptocurrency ATMs in place to help local users add money from traditional banks into their digital accounts, Chicago has come into its own as a cryptocurrency hub.
• Illinois legislators are currently examining whether to create a trust for financial institutions or investment companies that hold digital assets such as cryptocurrency. 
• If the bill passes, Illinois will become the second U.S. state after Wyoming to allow virtual currency trusts.

City of the big shoulders, hog butcher for the world, Chicago is looking to add another title for the digital age: finance center. City leaders are working to make Chicago open for the start-up community and new investment opportunities, and one way to do this is by adapting quickly as a finance center. Now with over 20 cryptocurrency ATMs in place to help local users add money from traditional banks into their digital accounts, Chicago has come into its own as a cryptocurrency hub!

Investors have always looked for new and faster ways to make money. The internet has paved the way for various digital products that can deliver on this, but nothing has generated so much interest as cryptocurrency capacity for instant, friction-free payments between two parties without the need for an intermediary. This can earn early adopters millions – or help start paradigm shifts in technology and communication.

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“The real expert, the final arbiter of what’s happening, is the market itself,” said Grandmaster Carman, a fintech consultant and board member at Global DCA, a Chicago-based cryptocurrency industry association. “People can pass judgment all they want but the market is king, and when you have a market that has reached over a trillion dollars, this is way beyond proof of concept.” We received some valuable feedback on how to make this one more succinct and effective.

Bitcoin is a decentralized peer-to-peer payment network launched in 2009. While there is no central bank, the encrypted digital transactions are verified by blockchain technology which is not only used to verify all transactions but provides proof of cost and progress while preventing any third party from accessing the system and therefore empowers users with full autonomy over their funds.

The Crypto market is growing like hell

Bitcoin is equivalent to the dollar. It is the most valuable cryptocurrency in the world, with a market cap of about $707 billion. The price of a bitcoin went from about $600 five years ago to more than $60,000 before a May 12 tweet by Tesla CEO Elon Musk about the industry’s large carbon footprint precipitated a nearly 50% price tumble. Today the price has since recovered to about $38,000 per bitcoin.

Other cryptocurrencies which are experiencing upticks in popularity other than bitcoin include Ethereum and Dogecoin, both of which were created as a ‘joke’ by programmers in 2013. These early investors have witnessed significant gains in the market cap for these cryptocurrencies because even though they are considered to be ‘jokes’ they are becoming more widely used by merchants around the world.

In the spring, the cryptocurrency market capitalization topped $2 trillion with wide adoption and acceptance across markets. The market saw massive growth with many companies trying to capitalize on this new trend. With all of these large numbers, there are many who feel like something is amiss with the way cryptocurrencies are being valued. Major financial institutions have mild disapproval regarding cryptocurrencies as they know it isn’t a bubble but they also know that it isn’t meant to last either according to Jane Fraser CEO at New York-based megabank Citi, told the Economic Club of Chicago that cryptocurrencies are going to be “part of the menu” going forward, but warned to “not forget the power of the guardrails.”

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Conclusion

Illinois legislators are currently examining whether to create a trust for financial institutions or investment companies that hold digital assets such as cryptocurrency. The proposal would provide a regulatory framework for banks that wish to hire users who used their services to store digital currency data and balances. The proposed legislation does not require cryptocurrency wallets from specific investors or users but says the state government will work with those wishing to do so to create verified accounts on an ongoing basis.

If the bill passes, Illinois will become the second U.S. state after Wyoming to allow virtual currency trusts. In 2020, under Wyoming law, cryptocurrency exchange Kraken became the first digital assets company in the U.S. to be chartered as a bank. Part of Chicago’s strategy will be spurring cryptocurrency banks and exchanges to locate here, building a broader ecosystem that makes Chicago synonymous with crypto finance in the US