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NYC BitBond Battle: Mayor Adams’ Crypto Ambition Vs Lander’s Fiscal Caution

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In a dazzling display of bravado, Mayor Eric Adams has thrown a gauntlet at the feet of the crypto community, announcing his audacious plans for Bitcoin-enhanced bonds—dubbed Bitbonds—at the Bitcoin 2025 conference. With a sprinkle of BTC on top, these financial marvels promise to be the toast of the town, or perhaps just a recipe for disaster. 🍾💰

But wait! Enter stage left, Comptroller Brad Lander, the self-proclaimed guardian of fiscal prudence, who promptly labeled Adams’ initiative as “irresponsible.” Oh, the drama! Yet, experts whisper sweet nothings about the undeniable potential of these Bitbonds, leaving us all in a state of delightful confusion. 🤔

Adams’ Crypto Gambit Amid Mayoral Race

Our dear Mayor, in a move that could only be described as theatrical, graced the Bitcoin 2025 conference in Las Vegas, reigniting his fervent support for the crypto industry. Who knew a day’s notice could lead to such a spectacle? 🎭

In a moment that could rival Shakespearean drama, Adams declared, “We must lead a city and country of innovators and creators, not haters. And even those haters…we have to ask in a uniform manner, who is laughing now?” A standing ovation, perhaps? Or just a few raised eyebrows? 🤷‍♂️

Eric Adams at Bitcoin2025: “We must lead a city and country of innovators and creators, not haters. And even those haters…we have to ask in a uniform manner, who is laughing now?”

— amanda moore (@noturtlesoup17) May 28, 2025

With a flourish, Adams pledged to champion the creation of municipal “Bitbonds,” a bond partially backed by Bitcoin. Because why not mix a little crypto with municipal finance? What could possibly go wrong? 😅

“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 proclaimed, as the crowd collectively held their breath.

As the mayoral race heats up, one can’t help but wonder if Adams is merely playing the crypto card to secure his re-election as an Independent. After all, who doesn’t love a good plot twist? 🎬

When BeInCrypto reached out for a comment, City Hall spokesperson Allison Maser was quick to highlight the Mayor’s commitment to the industry, as if that would quell the storm brewing in Lander’s camp.

“Mayor Adams was the first American Mayor to have his initial three paychecks converted into crypto to signal that New York City, under this Mayor, will always embrace the technologies of tomorrow today,” Maser declared, as if the future of the city depended on it.

But Lander, the ever-watchful hawk, swooped in with his criticisms, declaring Adams’ Bitbond plan “legally dubious and fiscally irresponsible.” Oh, the irony! A battle of wits ensues! 🦅

Fiscal Caution from the Comptroller

In a press release that could rival a soap opera script, Lander stated, “New York City will not be issuing any Bitcoin-backed bonds on my watch. 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.” Touché! 🎤

“In spite of being jointly responsible for the issuance of City debt, the Comptroller’s Office has not been approached by anyone, inside or outside of the Mayor’s Office, about the notion of issuing debt having any relationship to cryptocurrencies of any kind,” said Lander’s senior press officer, Oluwatona Campbell, as the plot thickens.

As the world spins on its axis, the conversation shifts to the potential of Bitbonds as a new type of debt instrument. Could they be the answer to our fiscal prayers, or just another mirage in the desert of finance? 🌵

Bitbonds: A New Type of Debt Instrument?

Three years ago, Brian Estes, the Chief Investment Officer at Off the Chain Capital, proposed a US Treasury Bitbond. “We decided not to patent or trademark the idea but to put it out in the public domain,” he said, as if he were a benevolent wizard bestowing gifts upon the realm. 🧙‍♂️

“Forget the Strategic Bitcoin Reserve, it’s political fiction. Here’s something real, bulletproof and actionable: BitBonds from VanEck. I dug deep trying to find holes. This thing holds water!”

— Justin Bechler (@1914ad) April 16, 2025

These BitBonds, sold through auctions to a select group of financial firms, promise to include a sprinkle of Bitcoin. When the bond matures, the Bitcoin is paid in-kind directly to the bondholder, along with the full original investment. Sounds like a sweet deal, right? 🍭

However, Lander warns that a municipal bond would look much different than a federal one. “While the federal government issues bonds to fund traditional expenditures, New York City primarily issues bonds to fund capital assets,” he cautioned, as if he were the city’s financial guardian angel. 😇

“Our office has not contemplated debt issuance having any relationship with cryptocurrencies given that neither current federal nor state laws are supportive of the City dealing in cryptocurrencies,” Campbell added, as the skeptics sharpen their quills.

But wait! Estes isn’t backing down. He believes that Bitbonds could lower interest costs for residents. “If you are an issuer of a bond in New York City, and you need to shore up a billion dollars worth of bonds, it’s better to pay a lower interest rate than a higher interest rate,” he argued, as the crowd murmured in intrigue. 💡

“Municipal bonds are not taxable at the federal level. So, you pay no federal income tax on a municipal bond– that’s the same whether it has Bitcoin in it or not,” Estes explained, as if he were revealing the secrets of the universe.

As the debate rages on, Lander’s concerns about Bitcoin’s volatility loom large. “Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” he declared, as the audience gasped in unison. 😱

Estes, however, counters that only 1% of Bitcoin should initially back the bond, minimizing the risk. “When you size the amount of Bitcoin in a bond at a small percentage of 1%, it’s a de minimis risk,” he assured, as the skeptics pondered their next move.

Reintroducing a Hard Money Standard

Estes argues that the idea of a Bitcoin-enhanced bond isn’t radical; it’s merely a return to a bygone era. “Inside a bond, there are covenants. Pre-1971, bonds were repayable either in US dollars or in gold; you had a choice,” he explained, as the audience nodded in understanding. 🏛️

“All that Bitbonds would do is have a covenant like we used to have, pre-1971, and that covenant would say that 1% of the money that was invested would get paid back in Bitcoin,” he added, as the crowd erupted in applause.

But alas, the infrastructure for Bitcoin transactions in NYC remains a question mark. “New York City has neither any mechanism to pay for its Capital Assets in any other currency besides the US Dollar nor any means to convert Bitcoin to US Dollars,” Lander lamented, as the audience sighed in collective disappointment. 😔

Estes, ever the optimist, believes that building this infrastructure is a piece of cake. “There are companies like Lightspark that build on the Lightning Network that can build the infrastructure very easily,” he said, as the crowd perked up. 🎉

Ultimately, the fate of Bitbonds hangs in the balance, awaiting a thorough analysis of their feasibility and impact on fiscal health. “The wrong move is not to do anything at all… You need to try it first, and then see if it works,” Estes concluded, leaving us all on the edge of our seats. 🎢

Will NYC embrace the future of finance, or will it retreat into the shadows of skepticism? Only time will tell! ⏳

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2025-06-18 23:21

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