[2023-01-29] New York State Takes a Step Toward Cryptocurrency Adoption

[DaveF]

New York State Takes a Step Toward Cryptocurrency Adoption with New Bill

https://cryptonews.com/news/new-york-state-takes-step-toward-cryptocurrency-adoption-with-new-bill.htm

The state of New York has announced a new bill that would allow agencies to accept cryptocurrency as a form of payment for fines, civil penalties, taxes, fees, and other payments charged by the state.......

Going to be interesting to see how this plays out, how much traction it gets as it winds though the process. Seems on the surface to have some people behind it who are good and getting things done but in the end if there is resistance from other people will they choose to fight for it or pick another battle. In the end with more and more places in general accepting crypto payments I can't see it not happening sooner or later.

Also, what I find interesting is that what is not discussed is the fact that there are some smaller towns in NY that DO take crypto for some things, they are processing with Cashapp / Block / Square / whatever they are calling themselves these days and crypto is an option. But, I don't think they really care, it was just the quickest & easiest way to take credit cards and crypto came along for the ride. I'm reasonably sure that is the case in a lot of places. They really don't care HOW the funds get to them, just that they get them.

-Dave

[LeGaulois]

Not bad, but I see 2 problems with it.
(not really problems per se).

- Look like it won't be something mandatory. They won't be forced to accept cryptocurrency as a payment mean. I'm pretty sure some agencies won't care. Either because they may consider it a waste of time, or either for political reason, I don't know.
Just for joking, the agencies will need the Bitlicence and alike? Since they harassed companies, why not doing the same to be fair. lol

- it is not said, but I guess it will be the same of the cities you mentioned.
Using a 3rd party. From a government point of view, very danngerous to include private companies in your business. They can afford to make their own solution


I know The US want to become the crypto hub, but with politicians, you know... They all like to fight

[DaveF]

Not bad, but I see 2 problems with it.
(not really problems per se).

- Look like it won't be something mandatory. They won't be forced to accept cryptocurrency as a payment mean. I'm pretty sure some agencies won't care. Either because they may consider it a waste of time, or either for political reason, I don't know.
Just for joking, the agencies will need the Bitlicence and alike? Since they harassed companies, why not doing the same to be fair. lol

- it is not said, but I guess it will be the same of the cities you mentioned.
Using a 3rd party. From a government point of view, very danngerous to include private companies in your business. They can afford to make their own solution


I know The US want to become the crypto hub, but with politicians, you know... They all like to fight

New York can make it's own way, but even a place like Woodstock has less then 10000 full time residents. They don't have a formal IT staff and the last time I had to do something at Town Hall they proceed credit cards through a 3rd party and took checks to the local bank at the end of the day.

The New York DMV does, or at lest did their own credit card processing and deposits checks electronically.

Somewhere in between those 2 extremes is where a lot of the processing will fall.

So the smaller places if they do would use 3rd party, but I could see the DMV running their own. And probably having worse conversion rates then Coinbase but I'll rant about that if and when it happens.

-Dave

[stompix]

- Look like it won't be something mandatory. They won't be forced to accept cryptocurrency as a payment mean.

Are they even able to enforce such a thing?
We're not talking here about accepting a payment method in a legal tender but a completely different type of payment.

Using a 3rd party. From a government point of view, very danngerous to include private companies in your business.

They are already using that for taking debit and credit card payments, the middleman is already there, for them to process a debt card or a payment made via a thrid party to the same bank account is not a real difference, plus they will always have the option of making the client pay for that, I was actually amazed that till recently a lot of those agencies were charging you extra to pay with a card, so one can expect some extra fees of 1-3% with a crypto payment.

Even if it's obviously going to be far more than ideal, it's still better than what we have currently, which is nothing! 

So the smaller places if they do would use 3rd party, but I could see the DMV running their own. And probably having worse conversion rates then Coinbase but I'll rant about that if and when it happens.
-Dave

Since in some states the DMV still charges like 1.99% for CC, pretty obvious they will do the same thing, I don't see any organization being that generous unless the cost will be directly funded by the state.

[DaveF]

Since in some states the DMV still charges like 1.99% for CC, pretty obvious they will do the same thing, I don't see any organization being that generous unless the cost will be directly funded by the state.

They do not charge a fee in NY. I am guessing with them trying to do as much as possible online that any costs associated with taking cards is more then covered by allowing them to operate 24/7. Thinking about it they can also probably get a much better credit card processing rate since to put it bluntly, they do know where you live and what you drive ;-)

Dispute a charge your vehicle registration and license both get suspended.

Use a stolen card, then you really don't want to get pulled over because you know that it's been flagged.

And so on.

So even if they go with the universally hated BitPay they don't even have to make you jump though the BitPay KYC since as said, they know where you live. And at the 1% rate that BP charges it's still probably less then even the best credit card rates.

-Dave

[stompix]

They do not charge a fee in NY. I am guessing with them trying to do as much as possible online that any costs associated with taking cards is more then covered by allowing them to operate 24/7. Thinking about it they can also probably get a much better credit card processing rate since to put it bluntly, they do know where you live and what you drive ;-)

I wasn't sure of NY, that's why I said some, but as I learned in my brief contacts with the US system, you want something weird go to California

Credit and debit card transactions will be charged a 1.95% service fee.

I don't know if it's because I only see the bad things making it into the news but I have a feeling the banking and payment system there sucks, I never understood how you guys still work with checks, the whole no PIN cards, or giving your card to the waiter!

Also, why would a government institution not be able to deal with some measly fees for payments when a damn coffee shop can!

So even if they go with the universally hated BitPay they don't even have to make you jump though the BitPay KYC since as said, they know where you live.

Isn't the DMV that thing where you enter while you have a kid in elementary school and by the time you exit he has finished college and you're already in a retirement home?  I'm willing to bet they will force BitPay to do also a check-up before they allow you to open an account and go at least through Proof of Funds, just to have you deal with some papers.

We will see about the fees, but I have a feeling it's not going to be completely free or if there are no direct fees they will be hidden in the exchange rates. Companies like Bitpay has to make money somehow even if agencies don't and I doubt they will pay the 3rd party a fixed sum to have them accept crypto.

[cr1776]

Isn't the DMV that thing where you enter while you have a kid in elementary school and by the time you exit he has finished college and you're already in a retirement home?  ...

Have you seen the sloth scene in Zootopia?  You hit the nail on the head above:
https://www.youtube.com/watch?v=0woPde7OE1k

As far as the bill, yeah, it was introduced, but will it be passed by the legislature and then signed by the governor?  Given many people in NY have an aversion to independent, free people, who can operate outside of their control, I wouldn't count on it.

As far as fees go, some places will charge a 3% fee on credit cards, so anything under that is a plus.

[DaveF]

Isn't the DMV that thing where you enter while you have a kid in elementary school and by the time you exit he has finished college and you're already in a retirement home?  ...

Have you seen the sloth scene in Zootopia?  You hit the nail on the head above:
https://www.youtube.com/watch?v=0woPde7OE1k

As far as the bill, yeah, it was introduced, but will it be passed by the legislature and then signed by the governor?  Given many people in NY have an aversion to independent, free people, who can operate outside of their control, I wouldn't count on it.

As far as fees go, some places will charge a 3% fee on credit cards, so anything under that is a plus.

Drifting OT from crypto, but https://bitcointalk.org/index.php?topic=5373206.msg61584721#msg61584721
I can an do bash many of the things they do here in NY a lot of the time.

BUT, I will say the DMV process is still one of the better ones. Most likely because the faster they get you in and out the faster they get your money.
When I bought my last car I got my registration and my title before I got the paperwork in mail form the loan company.

Years ago a friend in FL bought a car from me. I drove the car down (overnight), met him at his house we ate lunch he dropped me off at the airport and went to the DMV. I made it though airport security (pre 9-11), got on the plane, flew from PBI to JFK and LANDED before he got out of the DMV. 4+ fucking hours later. THAT was a shit show.  It's supposed to be better now.

Anyway back to this, reading though more of the bill, it looks like it's allowing them to do it themselves and / or use any form of other payment gateway.
Will be interesting to see if it passes and what if anything municipalities will do. I am guessing it's just going to be 3rd party like they take credit cards, and for the larger institutions of NY that do credit card / check processing internally it's not going to happen since there would be more work / expense involved.

-Dave

[NeuroticFish]

Will be interesting to see if it passes and what if anything municipalities will do.

I had the impression that NY state was pretty harsh with crypto until now. So this change is... somewhat surprising for me.
However, as long as it didn't pass yet, .. I won't get my expectations too high. The hopes, yes, but not the expectations.
...And only afterwards we will see if this can set a trend or not. One step at a time, since we're still early.