Here’s an interesting “reversal of attitude.” The state of New York – which up to this point, has been relatively anti-crypto – is suddenly announcing plans to launch its own cryptocurrency payment system in the coming years.
Does New York Suddenly Love Crypto?
This is strange given that New York has widely been criticized for stifling cryptocurrency and blockchain innovation within its borders. The state issued the dreaded BitLicense approximately five years ago.
Many saw this document as a means of controlling or stopping blockchain and crypto activity within the state. It invoked high fees for digital asset startups and required so many leaps and bounds that many companies, i.e. popular cryptocurrency exchange Kraken, decided to pack their bags and leave the Big Apple altogether, swearing to never do business in New York again.
Maybe, however, this was all part of a bigger plan, which New York seems to be instilling as of late. Maybe the goal was to remove all potential competition by getting any crypto or blockchain-related companies out of New York so the state could finally initiate its own digital currency for people to utilize.
New York appears to be taking a page out of China’s book, which has worked very hard to limit bitcoin’s standing within its borders while pushing its own digital yuan agenda.
Either way, state regulators says that New York suffers from a wide “unbanked” population, and that many of its residents do not have access to appropriate means of credit, such as checking or savings accounts. The submission of a new kind of cryptocurrency in New York occurred last November, and the city is getting serious about when to release it.
Known as the “Inclusive Value Ledger,” the cryptocurrency and blockchain banking system would work by granting digital funds to employees in fields that are either underpaid or not paid at all, such as babysitting or assisting elderly individuals.
All persons involved in the banking system would have their own digital wallets, which would then be connected to what the state assembly refers to as a “master wallet.” This master wallet would be controlled by members of New York’s government, who would then remove transfer fees and work to speed up the payment processes for participants, so they can enjoy the benefits of standard banking without the waits or financial burdens.
We’re Trying to Fix Things Up
State assembly member Ron Kim explained in a statement:
I believe that our proposal, the Inclusive Value Ledger, has the potential to be truly revolutionary. The creation of a free public savings and payment platform that all New Yorkers can use, not only to pay for goods and services but also to transfer money directly to each other through, could potentially reshape New York into a fairer, healthier, wealthier, and more inclusive place for all.