New York legislators have recently proposed a bill that would enable state agencies to accept cryptocurrency payments such as Bitcoin, Ether, Litecoin and Bitcoin Cash.
The legislation proposes the utilization of cryptocurrency as a payment method for fines, civil penalties, rates and taxes. The bill further proposes that these digital currencies could be accepted in lieu of rent payments and other associated fees.
On Thursday, Jan. 26, Assembly member Clyde Vanel presented a proposal that would allow New York State agencies to pay with cryptocurrencies. This is based on the description provided in the New York State Senate website.
By establishing cryptocurrency as an acceptable form of payment for state agencies, this bill offers more financial flexibility and options for all involved parties.
The New York State Assembly Committee on Government Operations has been presented with the proposal for Assembly Bill A2532. According to its summary, the bill “[e]stablishes that state agencies are allowed to accept cryptocurrencies such as bitcoin, ethereum, litecoin and bitcoin cash as payment.”
The proposed bill, which would modify New York’s state finance law by incorporating “cryptocurrency as a form of payment,” describes cryptocurrency as “any form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank including but not limited to, bitcoin, ethereum, litecoin, and bitcoin cash.”
The bill seeks to enable state agencies the ability to form agreements with individuals or organizations that accept cryptocurrency “as a means of payment of fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts, including penalties, special assessments and interest, owed to state agencies.”
This week, Arizona State Senator Wendy Rogers tabled a similar bill to allow state entities to accept cryptocurrency as payment. Rogers additionally launched legislation that would authorize Bitcoin as official tender in her state.
These bills — which are an important step towards ensuring that these states remain at the forefront when it comes to embracing innovative technologies like crypto payments which clearly have the potential to transform how people transact across the globe — will certainly help promote the use of digital currency and could serve as an example for other states across the country.
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