The U.S. state of New York has been a hot spot for cryptocurrency in America, where overall the national government has moved slower to research, understand and adapt financial policies for the new technology. The state is now moving forward with a bill which:
Creates the digital currency task force to provide the governor and the legislature with information on the potential effects of the widespread implementation of digital currencies on financial markets in the state.
As the center of global trade for the world, New York has primarily focused on the stereotypical aspects of cryptocurrency as investment options. But cryptocurrency and blockchain technology have permeated much deeper in the the culture of the state.
Joining the education level and electronics industry, IBM and Columbia University formed a Blockchain research center in July at the Manhattan campus of Columbia University in New York City. The focus is developing a space to incubate blockchain applications with both academic and technical expertise in mind. The state, and specifically New York city, also drew attention In October for a blend of protest, art and informative display.
Cryptocurrency Attention Growing
An eight foot tall rat was placed directly in front of the Federal Reserve Bank of New York. It is white in color, but covered with informative facts and information about Bitcoin and economics in colorful writing. It included the deeper components of Bitcoin’s code and math equations as well as quotes from the original Bitcoin whitepaper written by Satoshi Nakamoto. Even the rat’s eyes spell out the letters "PoW.” This is the acronym for proof-of-work - the consensus mechanism that has kept the Bitcoin network secure since its creation.
The task force will be composed of technologists, consumers, institutional and retail investors, representatives of enterprises and academics. They have been given until December 12, 2020 to submit reports on their findings. These reports are designed to include proposals on how the state could best regulate, define or utilize cryptocurrencies. Other aspects in include the energy cost of mining cryptocurrencies, how cryptocurrencies are being traded within the state, how these trades may be affecting tax collection and a number of other aspects.
These issues have been under development in the state already. New York state energy use regulations were updated earlier this year to account for mining. A bill was proposed to provide $3 million dollars for developing a cryptocurrency to support the local economy as well called Ithacash. It noted several benefits:
Local loyalty - incentives through the local cryptocurrency for local businesses
Behavioural rewards - housing, healthcare and welfare sectors cut costs by rewarding citizens
Sharing economy - transactions within the community spurs teamwork
Donations - direct donations are possible with cryptocurrencies
Regional trade network - Businesses can transaction without restrictions
By: BGN Editorial Staff