Unbanked citizens, who represent 5.4% of the US population, are crucial to the market and do not need a bank account. The authorities have taken steps to protect investors while federal regulators struggle to enforce the law.
The use and adoption of cryptocurrencies have grown in Minnesota despite the recent collapse of the economy. University professor Vivian Fang said that people could use them to buy clothes and food at various businesses in the state.
Some online payment platforms have included a crypto payment option, allowing users to make large purchases. Besides acquiring real estate, travel tickets, and digital goods, people can donate to charities through cryptocurrency channels.
ATMs Allow US Merchants to Expand Cryptocurrency Adoption
In addition to the 159 ATM kiosks installed in Minnesota, there are also devices in North and South Dakota. The physical facilities are in those places where customers are most likely to use cash.
Some gas stations and convenience stores at more than 500 locations in Wisconsin, Minnesota, and Iowa are using Bitcoin ATMs. Chad Capp, a gym software entrepreneur, is exploring how to enable membership payments through cryptocurrencies.
Crypto Wallets Allow People Not to Need Bank Accounts
Vivian Fang said unbanked citizens are also a crucial part of the market, as crypto wallet operators do not require a bank account. The Federal Deposit Insurance Corporation revealed that about seven million US citizens, 5.4% of the population, do not have a bank account.
Ethnic minorities, such as Asians, African Americans, and Hispanics, earning little income are among this unbanked population. They have felt frustration trying to enter the American traditional banking system.
Fang thinks that cryptocurrencies provide an alternative where people do not need a credit score. That advantage has allowed the use and adoption of those assets to a greater degree.
The Application of Actions to Protect Cryptocurrency Investors in Minnesota
The authorities of Minnesota have taken steps to protect investors while federal regulators struggle to enforce the law of the industry. The Minnesota Department of Commerce and the Securities and Exchange Commission (SEC) received a USD 100 million settlement. The state will receive USD 940,000 of the shares for offering unregistered interest-bearing products to residents.
In June, Representative Byron Donalds, from Florida, said that Tom Emmer, Congressman of the Minnesota District 6, would work with Alabama senator Tommy Tuberville. They would introduce a bill in the Senate to ban the US Department of Labor from determining which activities may become part of 401(k) plans.
US Regulators Encourage a Strengthened Regulation of Cryptocurrencies
The US Treasury Department recently stated that the UK-US Financial Regulation Task Force discussed a broader cryptocurrency regulation strategy.
Besides cryptocurrency scrutiny, regulators have considered issues of current market developments like stablecoins and the exploration of CBDCs.
The American government agency said participants committed to supporting safe financial innovation and strengthening regulatory outcomes for stablecoins. They also considered discussing broader regulatory initiatives for cryptocurrencies in the future.
Meanwhile, Bitcoin is trading at around USD 23,311 and has accumulated a 3.1% gain over the last week. Its daily trading volume is above USD 39.70 billion, while its market capitalization is about USD 445.46 billion, according to CoinGecko.
By Alexander Salazar
