Despite Mayor Eric Adams' aspirations to position New York as a crypto hub, the city's plans for issuing BitBonds have faced skepticism. Comptroller Brad Lander firmly stated that NYC would not issue bitcoin-backed bonds, citing instability in cryptocurrencies as a risk to financial stability. He emphasized the difference between federal and city bonds and pointed out that NYC lacks mechanisms to handle bitcoin transactions, making the proposal impractical. Lander's comments suggest a cautious approach to integrating crypto into city finances, prioritizing stability over innovation.
Mayor Eric Adams may be willing to bet our future on crypto in exchange for a trip to Vegas, but my job is to ensure our City's financial stability.
While the federal government issues bonds to fund traditional expenditures, New York City primarily issues bonds to fund capital assets.
Cryptocurrencies are not sufficiently stable to finance our City's infrastructure, affordable housing, or schools.
Proposing that New York City should open its capital planning to crypto could expose our City to new risks and erode bond buyers' trust in our City.
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