Mr. Adams’ income will be turned into Bitcoin and Ethereum because he wants New York City to become the worldwide capital of cryptocurrencies, reports Business Insider.
In November, Eric Adams, the mayor of New York City, announced that he would take his first three paychecks in Bitcoin if he became mayor. To the extent that he was able, Mr. Adams has kept his commitment.
Because the city is required by federal labor laws to pay base wages in government-issued currency to all employees, including Mr. Adams, the mayor has arranged for his paycheck to be converted into Bitcoin and Ethereum on Friday via Coinbase, a cryptocurrency exchange.
Economic Development Arguments
Mr. Adams’ willingness to keep his promise and publicize it worldwide points to one of his most common economic development arguments: New York City should become the worldwide center for cryptocurrencies.
On some levels, the incoming mayor is just following a tried-and-true political strategy: courting the business community. Fintech is a burgeoning industry in New York City, and blockchain-based businesses make up a large portion of it.
The industry has accepted Mr. Adams. Mr. Adams has been known to fraternize late into the night at Zero Bond, a members-only downtown nightclub where Michael Novogratz, a big bitcoin investor, staged a fund-raiser for him in late September.
In an interview, Mr. Novogratz viewed Mr. Adams’ declaration as a powerful symbol.
Mr. Adams also travelled to Puerto Rico on the private plane of Brock Pierce, a former child actor who is now a bitcoin investor, shortly after his victory. Mr. Adams claimed to have paid for his travel to Puerto Rico, but he refused to show receipts. When approached for comment on Thursday, Mr. Pierce, who attended the mayor’s election night victory party at Zero Bond and donated $100,000 to a political action committee that backed Mr. Adams’ mayoral campaign, said he was “preoccupied” and would call back later.
While Mr. Adams’ announcement may appear theatrical, State Senator Diane J. Savino, who leads the Senate Committee on Internet and Technology, believes that his activities will make his people more comfortable with cryptocurrencies.
Mr. Adams’ crypto-boosterism, on the other hand, has sparked skepticism among economists who believe digital currencies are a financial scheme or bubble that decry the industry’s prolific production of greenhouse gases during a climate emergency.