The controversy over new teeth in New York's safety regulations for automated teller machines could soon be rendered moot by digital video storage.

Proponents of the technology, in which images are saved as computer files rather than on videotapes, say it offers the best chance of avoiding the image degradation that aging or otherwise faulty tapes can cause. The digital systems also make it easy to centralize surveillance, since there is no need to transport a tape. "Digital is the wave of the future," said Ralph M. Fatigate, director of criminal investigation for the New York State Banking Department.

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