- Adams attended the Bitcoin 2025 conference in Las Vegas on May 28, in which he publicized plans to introduce a municipal bond supported by Bitcoin or Bitbond.
- He mentioned that he believes that the city needs a Bitbond and will push and find to get a Bitbond.
Brad Lander, the New York City Comptroller, attacked the recent proposal of Eric Adams to issue municipal bonds supported by Bitcoin, alerting that doing so will come with a financial risk and take away investor confidence.
On May 29, Lander issued a statement in which he mentioned that he would not permit New York City to issue the crypto-associated debt tool while he is in his position. His office is responsible for debt issuance with the Mayor’s Office of Management and Budget.
The Comptroller further mentioned that the virtual assets are not adequately stable to finance the infrastructure of the city, economic housing, or schools. However, the proposal exposes the city to new risks and takes away the buyer’s trust.
As per Bloomberg’s report, Lander is a potential competitor to succeed Adams in the November election. However, Adams is looking for reelection as an independent. Adams attended the Bitcoin 2025 conference in Las Vegas on May 28, in which he publicized plans to introduce a municipal bond supported by Bitcoin or Bitbond.
The Bitbond Model
He mentioned that he believes that the city needs a Bitbond and will push and find to get a Bitbond so one can do the bond investments in New York City.
As per the BitBond model outlined by the Bitcoin Policy Institute, bondholders would earn a 1% annual interest rate for a duration of 10 years, and after maturity, they will also get a share of any gains in the price of Bitcoin.
The document also highlights that 90% of the funds generated would be dedicated to government spending and the other 10% to buy Bitcoin for a strategic reserve. Investors will get 100% of Bitcoin appreciation up to a 4.5% threshold compound annual return for 10 years.
After getting the threshold, investors will get 50% of the extra Bitcoin appreciation. The government holds the remaining 50% of gains beyond the threshold. However, Adams didn’t provide many details on how the proposed BitBond would function.
The statement of Lander highlighted that the city mainly issues bonds to fund capital assets, and can fund other purposes only under very restricted and closely defined circumstances.
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