Digital assets may not be a top issue in the United States presidential elections, but they are increasingly becoming a key topic for many voters, particularly in swing states.
According to a16z’s “State of Crypto 2024” report, data from Google Trends indicates that Pennsylvania and Wisconsin, both expected to host tight races, have recorded the fourth- and fifth-largest increases in cryptocurrency search interest since the 2020 elections.
Other swing states, such as Michigan and Georgia, have also seen a surge in cryptocurrency queries, while Arizona and Nevada have experienced moderate declines in interest since 2020. These states can swing either way — Democratic or Republican — during presidential elections, often playing a crucial role in determining the outcome of US elections.
Source: a16z’s “State of Crypto 2024” report
According to the a16z report, over 40 million Americans now hold cryptocurrencies, and a majority of them express support for candidates who favor crypto-friendly policies.
Among voters in swing states, 41% identify as Democrats, 39% identify as Republicans, and 20% identify as Independents or other. 25% of Americans between the ages of 18 and 34 own cryptocurrencies. According to the report:
“One factor that could have raised people’s crypto interest this year was the listing of Bitcoin and Ethereum exchange-traded products (ETPs). The number of Americans who hold crypto could grow as ETPs such as these broaden investor access.”
Bitcoin (BTC) and Ether (ETH) funds that are available on major traditional exchanges in the US already hold $65 billion in onchain assets as of September.
The digital dollar era
One of the key topics on voters’ minds regarding cryptocurrencies is the prospect of a central bank digital currency (CBDC) in the United States.
Over the past few years, CBDC development among global central banks has increased, with several countries working on cross-border projects either in research or proof-of-concept phases. The list of countries includes China, India, Canada, the United Kingdom, Russia, Germany, Brazil, Argentina, Australia, Sweden and many others.
Related: a16z exec: Stablecoin regulatory clarity needed to avoid ‘FTX-level issue’
In the United States, the Federal Reserve has been researching a digital version of the US dollar since 2020. This initiative has faced significant opposition from candidates and lawmakers, while stablecoins issued and backed by private companies have been filling this void, supporting the dollar’s role as the global reserve currency.
According to a16z’s report, US dollars make up more than 99% of stablecoin currency shares, and stablecoin issuers are already among the top 20 holders of US debt, holding $92 billion in Treasurys. The report notes:
“Stablecoins make it easy to transfer value. They amounted to $8.5 trillion in transaction volume across 1.1 billion transactions in the second quarter of 2024 ended June 30. Stablecoin transaction volumes more than doubled Visa’s $3.9 trillion in transactions over the same period.”
Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’
