New York Mayor Eric Adams said cryptocurrency and blockchain are still an “incredible opportunity” for the city as it recovers from the pandemic, despite the market meltdown following the collapse of FTX.
(Bloomberg) — New York Mayor Eric Adams said cryptocurrency and blockchain are still an “incredible opportunity” for the city as it recovers from the pandemic, despite the market meltdown following the collapse of FTX.
“As with all financial products, price fluctuations are an expected feature of the market — and it is shortsighted to believe that setbacks in an industry are an indication that it won’t experience long-term growth,” City Hall spokesman Jonah Allon said, responding on the mayor’s behalf.
Known as a crypto enthusiast, Adams has vowed to make New York the “center of cryptocurrency” and even suggested schools should teach about the asset class and the blockchain. The mayor, who took office this year and makes $258,750 a year, converted his first three paychecks to Bitcoin and Ethereum through Coinbase Global Inc.’s exchange, following up on a vow he made about a year ago.
The crypto world is facing a reckoning in the wake of Sam Bankman-Fried’s FTX’s bankruptcy, with crypto lenders and other exchanges halting withdrawals. At stake is whether a crisis of confidence topples the lucrative business of borrowing, lending and leveraging crypto and causes an industry-wide retrenchment.
Bitcoin fell as much as 3.1% on Wednesday and has tumbled around 75% from a record high of almost $69,000 reached about a year ago. Ether dropped as much as 3.6%.
The mayor’s 2021 tax filings, which he released last month, also show that he bought virtual currency that year and likely didn’t sell any, since Adams didn’t claim capital gains or losses.
Allon added that the mayor supports the innovation and economic growth this sector could bring for the city and isn’t recommending New Yorkers invest in cryptocurrency. He declined to share further details of Adams’s crypto holdings, saying that they are personal investment decisions.
–With assistance from Fola Akinnibi.
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