California Launches ‘Breakthrough Project’ to Overhaul Government Services, Includes Major Crypto Players
California Governor Gavin Newsom launched the state-backed “California Breakthrough Project,” an initiative aimed at modernizing state services by collaborating closely with tech and crypto firms. The project marks California’s significant engagement with blockchain technology, the governor’s office said Tuesday.
The task force held a secret meeting in early June at blockchain firm Ripple’s headquarters before the public rollout, bringing together executives from Ripple, Coinbase, and MoonPay, according to the governor’s office. Newsom touted the collaboration as bringing “the best and the brightest” together to improve state operations.
The initiative seeks to revamp services like licensing, occupational certification, workforce programs, and public benefits delivery, aiming to drive “modern solutions” and innovation.
Blockchain Legitimization?
The participation of prominent crypto-native firms stands out. Both Ripple and Coinbase, major players in U.S. crypto-policy discussions and often labeled industry giants, are involved in shaping California’s approach to modernizing government operations.
“California isn’t just tolerating crypto, it’s legitimizing it and recognizing its value,” stated Kony Kwong, CEO of GAIB, suggesting the inclusion signals “an underlying trust” in the companies and the technology.
California Governor Gavin Newsom, in a statement styling the effort as collaborative progress embracing the “benefit of all Californians,” emphasized convening state leaders and tech experts to tackle inefficiencies and catalyze modern solutions.
Infrastructure Potential
Experts highlight that this early inclusion of crypto-native firms signals a rare instance where those built on blockchain principles are contributing from the outset. The goal is to integrate principles like transparency, auditability, and robustness prevalent in blockchain technology.
“This isn’t about token speculation—it’s about infrastructure,” confirmed Kony Kwong.
Dominic Ryder of Alvara agreed, adding the state’s move acknowledges blockchain “as foundational infrastructure, not just a financial technology.” It parallels trends in decentralized finance, showing how these characteristics can reshape government services.
Ryder also acknowledged that crypto faces a “perception challenges,” necessitating clarity on technology benefits beyond speculation to avoid public skepticism.
