Cryptocurrency Paradise? Hawaii's cryptocurrency demand grew by more than 687% in 2021

A new report from MIQ Digital shows that Hawaii and California in the United States saw the highest growth in demand for cryptocurrencies in 2021.

Comparing average interest from 2020 to 2021 based on data collected by Google Trends, MIQ Digital reports that demand for cryptocurrency in Hawaii has increased by more than 687% compared to 2020, even more than California (655%). However, users are most likely to find businesses willing to accept crypto payments in California, with 440 businesses currently willing to accept crypto payments, compared to just 180 in Florida.

“Cryptocurrencies may not yet be part of the mainstream economy, but demand is so high in some states that U.S. financial authorities are looking for ways to regulate the market,” the report said.

“Over the past five years, interest in cryptocurrencies in the United States has surged by more than 3,000%. Approximately 6% of the U.S. population currently uses or owns cryptocurrencies, and the trend continues to grow. In fact, as many as a quarter of U.S. investors are now entrusting their funds to the crypto markets.”

The report added that Dogecoin (DOGE) had the largest price increase, jumping 6,900% since December 2020. Interest in Dogecoin increased 1,781% across the United States, with Dogecoin hotspots being Alaska, California, North Dakota, and Washington.

Enterprises and retail crypto investors may be attracted to different states due to different regulatory frameworks. Since the U.S. government has largely left the question of regulating cryptocurrencies to individual states, states like Texas with less regulated power grids may be more attractive to crypto miners. Wyoming is attracting blockchain companies through the efforts of pro-cryptocurrency Senator Cynthia Lummis and Caitlin Long, CEO of digital bank Avanti Bank & Trust.

However, Hawaii lawmakers have also been working to establish the state as a regulatory haven for crypto traders and businesses. Early last year, the state began considering a bill that included support for banks to custody digital assets. Last March, Hawaii also established a digital currency sandbox aimed at attracting crypto businesses to the state.

Acceptance of cryptocurrencies by businesses in the U.S. is slowly growing. To date, about 2,300 U.S. businesses accept Bitcoin.