New York Weighs Benefits Of Bitcoin Integration

Last week, New York City councilman Mark Levine proposed the introduction of bitcoin into the city’s payment options for fines.

Levine introduced a bill that would integrate bitcoin on Thursday, saying that cryptocurrency acceptance within the state government was an important step in keeping New York at the forefront of technology.

Bitcoin Would Save On Transaction Fees

In an interview with CoinDesk, Levine said the initial reason he supported the idea of bitcoin payments was the anticipated savings on transaction fees. Credit card fees take up a significant portion of the city’s revenue from parking tickets and other fines, but bitcoin payments would eliminate that problem.

His concerns about transaction fees echo that of several major companies who have chosen to integrate cryptocurrency payments. Since bitcoin eliminates the need for a third party, transaction fees are non-existent.

Bitcoin Integration Gives NY A Leg Up In Attracting Startups

Levine said that cost savings wasn’t the only reason bitcoin payments would be beneficial to the city. He said that with more and more startups choosing New York rather than Silicon Valley as a home for their ventures, it would be important for the Big Apple to jump on board with cryptocurrency payments ahead of the curve.

New York Historically Supports Bitcoin

New York has already been at the forefront of bitcoin adoption; the city was home to the world's first brick-and-mortar bitcoin center, and city officials developed a BitLicense in an effort to protect consumers.

The license requires bitcoin operators to maintain a customer database and keep a reserve of bitcoin to match customer assets.

Related Link: MyCoin Ponzi Scheme, Another Setback For Cryptocurrencies

Concerns Keep Bitcoin Out Of The Government

Still, the bill is a long way from being passed, with critics saying the currency’s volatility would create a problem for the state.

New York is not the only place considering bitcoin as a payment option; New Hampshire, Utah and Pennsylvania also explored their own versions of the bill, but no state has taken the final steps to incorporate cryptocurrency payments yet.