NY Bill would allow crypto payments to state agencies

New York is considering a bill that would allow consumers to pay state agencies with cryptocurrency.

The legislationcurrently in committee before the state assembly, proposes that crypto be used as a “means of payment of fines, civil penalties, rents, rates, taxes, fees, charges” owed to state agencies, according to the draft of law, presented last week by Deputy Clyde Vanel.

Vanel, a Democrat whose 33rd district includes several neighborhoods in Queens, created what he called the country first crypto task force in 2019.

The legislation comes as payment industry leaders surveyed by PYMNTS say they see the crypto industry having a much more promising 2023 compared to 2022, at least as far as their field is concerned.

“A regulated yet supportive financial infrastructure is necessary for the success of crypto as the industry as a whole moves beyond simple entry into the mainstream and begins to seek value-added integrations with more traditional financial and institutional players. “, PYMNTS wrote last week.

And Dr. Yan Zhang, CEO of Airspeed recently told PYMNTS that the success of the crypto industry will come from the “seamless” integration of regulated FinTech architecture with decentralized systems.

“It is essential to develop a decentralized payment protocol and integrate it with regulated payment service providers and money service operators,” Zhang said, adding that ultimately companies need to offer payment service. cryptography that consumers can easily use.

As more traditional financial institutions seek to add crypto to their retail and institutional client services, observers hope that the promise of crypto and blockchain to provide cheaper domestic and cross-border payment solutions, faster and safer can finally be achieved, wrote PYMNTS.

At the federal level, regulation of the cryptocurrency industry in the wake of the FTX collapse has become a key priority for the new Congress, as reported here recently.

Representative Patrick McHenryRN.C., chairman of the House Financial Services Committee, has established a new crypto-focused subcommitteedubbed the Subcommittee on Digital Assets, Fintech and Inclusion.

Rep. French HillR-Ark., also vice-chairman of the House Financial Services Committee, will oversee that subcommittee.

“At a time of major technological advancements and changes in the financial sector, it is our duty to work in all directions and promote responsible innovation while encouraging FinTech innovation to flourish safely and efficiently. in the United States,” Hill said in a statement announcing his appointment to the subcommittee.

Last week, Senator Elizabeth Warren claimed in an interview with the American Economic Liberties Projects (AELP) that the previous administration “essentially gave the green light” to a cryptocurrency market “full of junk tokens, unregistered securities, rug draws, Ponzi schemes, pump and dump, money laundering and evasion of sanctions.

PYMNTS Data: Why Consumers Are Trying Digital Wallets

A PYMNTS study, “New Payment Options: Why Consumers Are Trying Digital Wallets” reveals that 52% of US consumers have tried a new payment method in 2022, and many are choosing to try digital wallets for the first time.

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