New York City Comptroller Brad Lander has pushed back sharply on Mayor Eric Adams’ proposal to issue municipal bonds backed by bitcoin, labeling the plan both “fiscally irresponsible” and “legally questionable.”
Unveiled at a recent bitcoin conference in Las Vegas, the “BitBond” initiative aims to use cryptocurrency as collateral for city bonds. However, Lander, who oversees the city’s debt management, warned that such an approach could undermine investor confidence and run afoul of federal tax regulations.
“Bitcoin’s volatility makes it an unstable foundation for financing critical public projects such as infrastructure, affordable housing, and education,” Lander stated. He stressed that the city’s current debt issuance system is firmly anchored in U.S. dollars, and integrating digital assets would require complex financial and legal mechanisms that New York is not prepared to implement.
While Mayor Adams has embraced cryptocurrency through initiatives like payroll conversions and a digital assets advisory council, Lander’s caution highlights the challenges and risks of blending traditional municipal finance with volatile digital currencies.
