Jason Oxman, CEO of the Electronic Trading Association (ETA), suggested that the association’s members may begin to recognize Bitcoin’s disruptive potential, which could lead to more partnerships between traditional electronic payment providers and Bitcoin startups.
On August 6, ETA, which represents companies such as Visa, MasterCard, Amazon, and PayPal, welcomed BitPay, the first crypto company to become an ETA member, according to a press release. The announcement expressed ETA’s commitment to embracing new technology and said it looks forward to “more such partnerships as the payments industry innovates for the future.”
In a recent interview with CoinDesk, the head of the financial industry group said that ETA does not defend Bitcoin or take any public positions that undermine other technologies, and that his support extends equally to all forms of electronic transactions.
However, Oxman highlighted a recent partnership with Atlanta-based Bitcoin payment solutions provider BitPay as proof that ETA is “not turning a blind eye to innovation.” Oxman said he is trying to build his organization as one that is open to collaborating with emerging technology startups, including Bitcoin-related companies, adding that his choices depend primarily on demand.
“At the end of the day, our industry is in the business of facilitating electronic transactions, and those electronic transactions will take any form that the customer or selected merchant consents to be in the form of electronic transactions.”
– Jason Oxman, AND CEO
Oxman added that the Bitcoin Foundation played a key role in educating ETA about the benefits of Bitcoin, highlighting the benefits of strategic partnerships between Bitcoin startups and companies in the electronic payments industry. Referring to the 2013 ETA event where Bitcoin Foundation General Counsel Patrick Mark spoke, Oxman said:
“[Mark]has done a good job of giving Bitcoin a business-centric backing. With that kind of introduction, our members are looking at Bitcoin as an interesting development in the industry, and at least one of our members saw it as a good fit to enter into a contract with a Bitcoin processor.”
Oxman also commented on New York’s BitLicense proposal, noting that ETA has previously had to pave the way for new payment options such as PayPal and spent most of its time ensuring that the government does not constrain innovation. But Oxman understood the government’s reaction, explaining that regulators were most concerned about customer protection.
“In a world of new payment technologies, any regulator will question the level of consumer protection available through alternative payment systems. The less those systems are established and implemented, the more regulators will feel obliged to step in and protect consumers where such protections are not available.”
Even the tough Oxman said he thinks the NYDFS should do more research on Bitcoin to understand both sides of the issue with the BitLicense proposal.
“I think it’s important to issue a warning that regulators shouldn’t reflexively apply rules just because something is new. What they should do instead is. I hope New York State will work on this, but the early signs are cause for concern. “We need to really take a hard look at how the system works, how the blockchain works, and how Bitcoin providers like Bitcoin Processor take additional steps to protect merchants to protect consumers.”
Earlier this week, New York City Department of Financial Services Superintendent Benjamin Lawsky extended the public comment period on the BiLicense proposal by 45 days, pushing the deadline back to October 21st. The action followed a joint letter from the New York State Department of Financial Services. $BTC In China, Huobi, and OkCoin, the “big three” relayed their comments and concerns regarding the proposed regulations to Mr. Lawsky.
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