New York City Comptroller slams Mayor BitBonds Bitcoin bond reserve strategy, says he will never support it during his term

New York Report: According to the official press release from the New York City Controller, Comptroller Brad Lander firmly rejected the BitBonds Bitcoin municipal bond proposal put forward by Mayor Eric Adams at the Bitcoin annual conference in Las Vegas. He stated that this was merely a public relations statement for the mayor's private trip, and that cryptocurrency cannot support New York City's public finances. He specifically issued a statement questioning the legal and financial impossibility of the plan, making clear his non-support. Brad Lander stated that during his term, New York City will not issue any Bitcoin-backed bonds. Lander emphasized that while Mayor Adams may have high expectations for cryptocurrency, as the Comptroller, his responsibility is to ensure the financial stability of New York City. Lander pointed out that cryptocurrency is highly volatile and cannot serve as a stable funding source for public infrastructure projects such as affordable housing and schools. He also warned that if New York City opens up a cryptocurrency asset reserve bond strategy, it could potentially weaken the city's existing bond credit ratings. According to the BitBonds proposal, investors can obtain 100% of Bitcoin appreciation, subject to certain thresholds, such as a 4.5% Compound Annual Return. For a 10-year bond of $100 yielding $155.30, after reaching this threshold, investors would receive an additional 50% of Bitcoin appreciation, with the remaining 50% of returns above the threshold going to the government. Tax-exempt municipal bonds are constrained by federal arbitrage tax rules, which limit the use of bond issuance and returns. Brad Lander believes that New York City currently lacks a mechanism to pay with or exchange Bitcoin for US dollars, with all municipal revenues still calculated exclusively in US dollars, which significantly undermines the technical and financial feasibility of BitBonds. The New York City Comptroller Brad Lander strongly opposes Mayor Eric Adams' BitBonds Bitcoin municipal bond plan, considering the concept legally questionable and financially irresponsible, and even criticizing it as a public relations operation for attending the Bitcoin conference. Lander emphasized that cryptocurrency's volatility cannot stably support public infrastructure, and incorporating it into municipal financial planning could potentially weaken New York City's bond credit rating.