Ben Lawsky shared his perspective on regulation for Bitcoin in an interview on Bloomberg and said that there is much room for improvement in the payment systems world.
He personally related how he banks with a large financial institution. When making a payment between his bank account and credit card- both part of the same institution- he was disappointed to find that it takes three days.
Thus, not only does Bitcoin have the potential to introduce quicker, frictionless payments on its own, but “it can also cause the rest of the payments systems world to really up their game and improve things.”
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With Bitcoin, he sees a world of innovation, not used to regulation, colliding with a tightly regulated bank world, “which is tightly regulated for a good reason”. Regulation should have the “lightest touch possible” to promote innovation, but not too light to leave room for things like money laundering. Getting the right balance in difficult.
In terms of progress on the BitLicense proposal, he said:
“We have thousands of comments. We’re going through them. There’s a whole team working on them. I’m working on them. I think it’s probably end of the year, early next year. We’ll continue to work really hard on it. But it’s tricky and we really want to get it right. So we want to move quickly but not rush.”
The proposal has been criticized by members of the Bitcoin community as being too stringent and that it would therefore stifle innovation.