New York City Controller Brad Lander has criticized the proposal of Mayor Eric Adams to issue municipal bonds supported by Bitcoin, warning that such a step would reduce financial risks and investors’ confidence.
In May 29 statement, lander Said He will not allow the city of New York to issue a crypto-based loan instrument while he is in the office. The Lander’s office shares responsibility for issuing loans with the management of the mayor and the office of the budget.
“Cryptocurrency is not sufficiently stable to finance our city infrastructure, affordable housing or schools,” Comptroller said, saying that the proposal exposes the city, saying that the proposal exposes the city
“For new risks and destroying the trust of bond buyers.”
According For Bloomberg, Lander is also a potential contender for Adams to succeed in the November election, running as a Democrat, while Edams is demanding reunioned as an independent.
Adams Announced the plan of introduction On May 28, a municipal bond supported by bitcoin, or Bitbond at the Bitcoin 2025 conference in Las Vegas, Nevada. Adams also reiterated the call to cancel the Ballence program of New York State.
Adams told the crowd at the conference, “I am confident that we need to do a bitBond, and I am going to push and fight to get a bitbond in New York so that you can invest the same bonds in New York City.”
Bitcoin Policy Institute, a March policy from a bitcoin lobby group, brief, mentioned A potential model for Bitbond. According to the document, Bondholders will earn 1% annual interest rate over a period of 10 years, and at maturity, they will also get a share of any profit in the price of bitcoin. The document also proposes that 90% of the raised funds will go to government expenditure, while the remaining 10% will be used to buy bitcoin for a strategic reserve.
Lander’s statement included a fake model of the possible structure of the bond. According to the document, investors will get 100% praise of bitcoin until 4.5% Threshold Compound Annual Return for 10 years. “On attaining the threshold, investors receive 50% of additional bitcoin appreciation. The government retains the remaining 50% profit beyond the threshold.”
Adams has so far provided more information on how the proposed bitBond will work. Lander’s statement insisted that the city of New York mainly issues bonds to fund capital assets, and can only finance other objectives in very limited and narrowly defined circumstances. Under Comptroller’s instructions 10, there are long -term investments such as capital assets infrastructure or technology upgrade that benefit the city in many financial years.
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