California has become the first American state to launch an official effort to examine how to regulate digital monies. The effort began when Governor Gavin Newsom recently signed an executive order calling on state agencies to start considering new regulations. The order also requires officials to find safe ways to widely adapt the use of digital currencies also called cryptocurrencies across the state. A cryptocurrency is a form of money that does not exist in physical form. Governments and banks do not oversee it. A network of computers records cryptocurrency activity between users. This activity is included in a “ledger,” or list, known as the blockchain. U.S. President Joe Biden ordered similar national action in March. Biden’s order directed federal agencies to consider regulatory measures for cryptocurrencies. It also urged the Federal Reserve, the U.S. central bank, to explore whether it should create its own digital currency. California has the largest economy in the United States. Officials see the state as a good candidate for developing cryptocurrency and blockchain technologies.