New York City Comptroller Brad Lander has firmly rejected Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin, labeling the plan as "legally dubious and fiscally irresponsible." Lander emphasized that cryptocurrencies lack the stability required to finance essential city infrastructure, affordable housing, or educational initiatives, warning that such a move could undermine investor confidence in the city's financial instruments.
The proposed "BitBond" was introduced by Mayor Adams at the Bitcoin 2025 conference in Las Vegas, aiming to attract crypto investors by offering bonds tied to Bitcoin's performance. The structure suggested that investors would receive a 1% annual interest rate over a 10-year period, with potential additional returns linked to Bitcoin's appreciation. However, Lander's office, which shares responsibility for debt issuance with the Mayor’s Office of Management and Budget, has made it clear that the city will not proceed with such a bond under current leadership.
Lander's rejection underscores a broader debate over the integration of cryptocurrencies into traditional financial systems. While proponents argue that digital assets can offer innovative funding solutions, critics highlight the volatility and regulatory uncertainties associated with such investments. This development also casts a spotlight on the differing approaches within city leadership regarding the future of cryptocurrency in municipal finance.
As the city approaches mayoral elections, with Lander potentially positioning himself as a candidate, this issue may become a focal point in discussions about fiscal responsibility and innovation in governance. The outcome of this debate could have lasting implications for how New York City navigates the evolving landscape of digital finance.