New York Mayor's Push for 'Bitcoin Bonds'... Comptroller Says 'Nonsense'

Eric Adams, the mayor of New York City in the United States, has officially proposed the issuance of the 'BitBond', a bond collateralized with Bitcoin (BTC). Brad Lander, New York City Comptroller, immediately stepped in to block the move.

According to Bloomberg on the 30th (local time), Comptroller Lander stated, "There will be no issuance of Bitcoin-based bonds by New York City," raising both legal and financial concerns regarding the proposal.

Comptroller Lander emphasized, "Virtual assets (cryptocurrencies) are not stable enough to financially support New York City's infrastructure, public housing, or schools," and pointed out that "exposing the city's capital plans to virtual assets poses new risks and could undermine the city's bond credibility." He further criticized Adams' proposal as "lacking legal foundation and financially irresponsible."

Previously, at 'Bitcoin 2025' held in Las Vegas, Mayor Adams declared, "We will make New York City the first in the US to issue BitBonds." He added, "If BitBond starts in New York, it will spread nationwide," and "We will make New York the global capital of virtual assets."

However, Comptroller Lander pointed out that "issuing tax-exempt bonds for the purpose of purchasing Bitcoin or earning investment profits through it is not permitted under current US tax law." He explained that all infrastructure funding in New York City is sourced in dollars, and there is currently no system in place to convert Bitcoin into legal tender or to issue bonds based on it.

Meanwhile, BitBond, as proposed by Mayor Adams, is being discussed in a structure similar to a 'Bitcoin-linked government bond.' The Bitcoin Policy Research Institute recently proposed that 10% of proceeds from US government bond issuances be used to secure strategic Bitcoin reserves, and that investors receive a fixed 1% interest rate plus a performance-based bonus linked to the increase in Bitcoin's value.