Jason Oxman, CEO of the Electronic Transactions Association (ETA), indicated that his organization’s members may begin to recognize the disruptive potential of Bitcoin, suggesting that this could lead to more partnerships between traditional electronic payment providers and Bitcoin startups.
On August 6, ETA, which represents companies like Visa, MasterCard, Amazon and PayPal, welcomed BitPay, the first virtual currency company to become a member of ETA, according to the press release. The announcement expresses ETA’s commitment to embracing new technologies and says it expects “more such partnerships as the payments industry innovates for the future.”
In a recent interview with CoinDesk, the head of the financial trade group clarified that ETA does not defend Bitcoin and has not taken an official position at the expense of other technologies, saying its support also extends to all forms of electronic transactions.
However, Oxman pointed to its recent partnership with Atlanta-based Bitcoin payment solutions provider BitPay as proof that ETA “won’t turn a blind eye to innovation.” Oxman said he sought to present his organization as one open to working with emerging technology startups, including Bitcoin-related companies, adding that his choices depended largely on demand:
“At its core, our industry is in the business of facilitating electronic transactions, and those electronic transactions will take the form of whatever the customer or merchant of their choice accepts as the form of their electronic transaction.”
– AND CEO, Jason Oxman
Oxman added that the Bitcoin Foundation played a major role in raising ETA’s awareness of the benefits of Bitcoin, highlighting the benefits of strategic partnerships between Bitcoin startups and companies in the electronic payments industry. Referencing a 2013 ETA event at which Patrick Murck, general counsel of the Bitcoin Foundation, spoke, Oxman noted:
“(Murck) has done a good job providing commercial support for Bitcoin. With this kind of introduction, our members see Bitcoin as an interesting development in the industry, and at least one of our members has seen fit to do a deal with a Bitcoin processor.”
Oxman also commented on New York’s BitLicense proposal, noting that in the past ETA had to pave the way for new payment options like PayPal, spending most of its time ensuring that the government did not restrict innovations. However, Oxman understands the government’s reaction, explaining that regulators were more concerned about protecting customers:
“In the world of new payment technologies, all regulators will be asking questions about the level of consumer protections available through alternative payment systems. The less these systems are established and deployed, the more regulators will feel compelled to step in and protect consumers where these protections would not otherwise be available.”
Although Oxman said he understands both sides of the BitLicense proposal issue, he believes the NYDFS should conduct more research on Bitcoin:
“I think it’s important to caution that regulators shouldn’t apply reflexive rules just because something is new. What they should do instead – I hope New York will do this, but the early signs are concerning – they should take a deep look at how Bitcoin systems work, how blockchain works, how Bitcoin providers, like Bitcoin processors, take additional steps to protect consumers and merchants.”
Earlier this week, New York Department of Financial Services Superintendent Benjamin Lawsky extended the public comment period on the BiLicense proposal by 45 days, extending the deadline to October 21. This action follows the joint letter from BTC China, Huobi and OkCoin in which the “big three” addressed their comments and concerns regarding the regulatory proposal to Lawsky.
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