NY Bill allows crypto payments to state agencies

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

The legislation, now in committee before the state assembly, proposes that cryptocurrencies be used as a “means of payment for fines, civil penalties, rents, fees, taxes, fees, charges” owed to state agencies, according to the bill, introduced last week by Congressman Clyde Vanel.

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

The legislation is happening as payments industry leaders polled by PYMNTS say they see the cryptocurrency industry having a much more promising 2023 than 2022, at least when it comes to their field.

“A regulated but supportive financial infrastructure is necessary for cryptocurrency to succeed as the industry as a whole moves beyond simply entering the mainstream and begins to seek value-realizing integrations with more traditional financial and institutional players,” PYMNTS wrote. last week.

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

“It is crucial 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 a cryptographic service that consumers can easily use.

As more traditional financial institutions look to add cryptocurrencies to their services for retail and institutional customers, observers are hopeful that the promise of cryptocurrencies and blockchain to provide cheaper, faster and more secure domestic and cross-border payment solutions can finally be realised. wrote PYMNTS.

At the federal level, regulating the cryptocurrency industry in the wake of the FTX crash has emerged as a key priority for the new Congress, as noted here recently.

Rep. Patrick McHenry, R.C., chairman of the House Financial Services Committee, has put together a new subcommittee focused on cryptocurrencies, dubbed the Digital Assets, Financial Technology and Inclusion Subcommittee.

Rep. French Hill, R-Ark., also a vice chairman of the House Financial Services Committee, will oversee this subcommittee.

“At a time of great technological advancement and change in the financial sector, it’s our job to work across the aisle and foster responsible innovation while encouraging FinTech innovation to thrive safely and effectively in the United States.” , Hill said in a statement announcing his appointment to the subcommittee.

Senator Elizabeth Warren said in an interview with the American Economic Liberties Projects (AELP) last week that the previous administration “essentially greenlit” a cryptocurrency market “filled with junk tokens, unregistered securities, on the carpet, Ponzi schemes, pumps and landfills, money laundering and sanctions evasion”.

PYMNTS data: Why consumers are trying digital wallets

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