Lawmaker Wants New York State to Pilot Local Cryptocurrencies

A bill introduced by New York Assemblyman Ron Kim would launch pilot programs testing cryptocurrencies as a community monetary system.

Jun 5, 2018 at 8:15 p.m. UTC
Updated Sep 13, 2021 at 8:01 a.m. UTC

New York Assemblyman Ron Kim wants cryptocurrencies to help support local communities.

Bill A11018, if passed, would amend the New York urban development corporation act to launch 10 pilot programs creating local community currencies, which could be cryptocurrencies or other forms of alternative digital forms of money, according to public documents. The programs would hopefully encourage residents of a particular community to spend locally, thereby supporting their neighborhood ecosystems.

It specifically mentions using blockchain technology to "allow us to implement this seamlessly by allowing consumers, citizens, and business owners to trade in and out from dollars to [cryptocurrencies] instantaneously," adding that it would have a "significant long-term social impact."

The bill notes that creating a local use case for cryptocurrencies can fight the "unduly negative perceptions" toward the space, adding that "more and more members of the younger generation are not only familiar with but expect widespread use of blockchain technology."

It continued:

"By giving new mission and purpose to this form of currency, we are empowering people to take ownership of local growth. By trading in their dollars for a local community currency, either in the form of a digital or cryptocurrency, people will keep their money in their neighborhoods, pay taxes, and also earn tangible rewards for positive civic action."

In a statement, Kim said "community currencies are the next step in fostering regional economic growth and local civic participation," adding that "every local dollar spent in a mom and pop store stimulates local job growth."

New York image via Shutterstock

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