The post NYC Comptroller rejects Mayor Adams’s proposal for Bitcoin-backed bonds appeared on BitcoinEthereumNews.com.

New York City Comptroller Brad Lander has criticized Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin, warning that such a move would introduce financial risk and undermine investor confidence. In a May 29 statement, Lander said he would not allow the New York City to issue the crypto-tied debt instrument while he is in office. Lander’s office shares responsibility for debt issuance with the Mayor’s Office of Management and Budget. “Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” the comptroller said, adding that the proposal exposes the city ”to new risks and erode bond buyers’ trust.”  According to Bloomberg, Lander is also a potential contender to succeed Adams in November’s election, running as a Democrat, while Adams is seeking reelection as an independent. Adams announced plans to introduce a municipal bond backed by Bitcoin, or Bitbond, on May 28 at the Bitcoin 2025 conference in Las Vegas, Nevada. Adams also reiterated calls to repeal New York State’s BitLicense program. “I believe we need to have a Bitbond, and I am going to push and fight to get a Bitbond in New York so you can do those same bond investments in New York City,” Adams told the crowd at the conference.  New York City Mayor Eric Adams speaking at Bitcoin 2025: YouTube A March policy brief from the Bitcoin Policy Institute, a Bitcoin lobby group, outlined a potential model for BitBonds. According to the document, bondholders would earn a 1% annual interest rate over a 10-year period, and upon maturity, they’d also receive a share of any gains in the price of Bitcoin. The document also proposes that 90% of the funds raised would go toward government spending, while the remaining 10% would be used to purchase Bitcoin for a strategic reserve.…

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Filed under: News - @ May 31, 2025 6:27 pm