NYC’s Bitcoin Bond: A Comedy of Errors or a Financial Masterpiece?

by

Ah, the grand stage of New York City, where dreams are built and sometimes, just sometimes, they come crashing down! Our dear Comptroller, Brad Lander, has taken a mighty swing at Mayor Eric Adams’s audacious proposal to issue municipal bonds backed by Bitcoin. “Financial risk?” he scoffs, “More like financial circus!” 🎪

In a statement that could rival a Shakespearean monologue, Lander declared on May 29 that while he holds the reins, the city shall not dance to the tune of crypto-backed debt. After all, who needs stability when you can have chaos? Lander’s office, the gatekeeper of debt issuance, stands firm against this digital folly.

“Cryptocurrencies are as stable as a tightrope walker on a windy day!” he exclaimed, warning that such a proposal would expose the city to new risks and erode the trust of bond buyers. Trust? In this economy? 😂

Bloomberg whispers that Lander might just be eyeing the throne to succeed Adams in the upcoming November election, while Adams, the ever-ambitious, seeks to reign as an independent. A political showdown worthy of a reality TV series!

Adams, with the flair of a showman, unveiled his plans for the “Bitbond” at the Bitcoin 2025 conference in Las Vegas. “We need a Bitbond!” he proclaimed, as if summoning a genie from a lamp. “I will fight for it!” And who wouldn’t want to invest in a bond that sounds like a character from a sci-fi movie? 🚀

A March policy brief from the Bitcoin Policy Institute, a group that seems to have sprung from the depths of the crypto underworld, outlined a model for these BitBonds. Picture this: bondholders earning a whopping 1% annual interest over a decade, plus a slice of Bitcoin gains! Sounds like a deal too good to be true, right? 🤔

Lander, ever the skeptic, presented a simulated model of this bond structure. Investors would bask in the glory of Bitcoin appreciation up to a 4.5% threshold for ten years. “After that, it’s a 50-50 split!” he quipped, as if sharing a pizza. But who gets the last slice? 🍕

Yet, Adams remains tight-lipped about the nitty-gritty of how this BitBond would actually work. Lander, with the wisdom of a seasoned sage, reminded us that New York City primarily issues bonds for capital assets, not for whimsical crypto adventures. Under Comptroller’s Directive 10, these assets are long-term investments that benefit the city over multiple fiscal years. Because, let’s face it, who wants to gamble with the city’s future?

Read More

2025-05-31 01:14