NEW YORK (AP) \u2014 New York City\u2019s new mayor, Eric Adams, plans to convert his first paycheck this week into two cryptocurrencies, which he has been hyping as a potential economic engine for the city.<\/p>\n\n\n\n
The Democrat\u2019s office announced Thursday that Adams\u2019 first salary payment will be deposited with Coinbase, an online platform used for buying cryptocurrency, and then converted into Ethereum and Bitcoin.<\/p>\n\n\n\n
\u201cNew York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations,\u201d Adams said in a statement. \u201cBeing on the forefront of such innovation will help us create jobs, improve our economy, and continue to be a magnet for talent from all over the globe.\u201d<\/p>\n\n\n\n
The city noted in its news release that federal labor rules bar the city from paying employees in cryptocurrency, but that any worker paid in U.S. dollars can use an exchange to buy cryptocurrency.<\/p>\n\n\n\n
Adams\u2019 use of his public office to promote the crypto industry drew criticism from at least one upstate New York environmental group, Seneca Lake Guardian, which noted that creating and managing cryptocurrency can consume enormous amounts of energy, often produced by power plants that contribute to climate change.<\/p>\n\n\n\n
\u201cMayor Adams is dead wrong and his ignorance could cost New Yorkers millions of dollars in energy bills while killing local economies, poisoning our water and filling our air with deadly C02 emissions,\u201d the group said in a statement.<\/p>\n\n\n\n
State Attorney General Letitia James has investigated cryptocurrency trading platforms and warned last year that investors \u201cshould proceed with extreme caution when investing in virtual currencies.\u201d<\/p>\n\n\n\n
\u201cCryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains,\u201d James said.<\/p>\n\n\n\n
Adams has suggested that cryptocurrency and blockchain technology, a digital ledger where cybercurrency transactions are recorded, should be taught in schools.<\/p>\n\n\n\n
Cryptocurrency is a type of digital money that uses encryption technology to track transactions. They don\u2019t have a country\u2019s government backing them, a central bank, interest rates, or a long history of exchange rates against other currencies. That can make it\u00a0difficult to assess their value.<\/p>\n\n\n\n
Investors rely on market-driven changes in the value of cryptocurrency to make a profit.<\/p>\n\n\n\n
When asked in November whether it would be a bad economic strategy and conflict of interest for the mayor,\u00a0Adams told CNN:\u00a0\u201cI\u2019m using my personal money. I lost thousands of dollars in the stock market during the stock market crash in my retirement fund. Volatility is part of some of the investments that we make.\u201d<\/p>\n\n\n\n
In November, Adams flew to a political conference in Puerto Rico on the private jet of Brock Pierce, a former child actor and cryptocurrency entrepreneur.<\/p>\n\n\n\n
A spokesperson for Adams at the time told\u00a0The New York Post\u00a0that Adams paid for the ride through a travel agent.<\/p>\n\n\n\n
New York City Comptroller Brad Lander, whose office oversees public pension funds, said the city\u2019s retirement systems have no plans to invest in digital currencies.<\/p>\n\n\n\n
\u201cWe have concerns about both the volatility and energy consumption of cryptocurrencies, and will continue to watch developments in the cryptocurrency industry closely,\u201d said Shaquana Chaneyfield, a spokesperson for Lander.<\/p>\n\n\n\n
David Yermack, the chair of the finance department at New York University\u2019s Stern School of Business, said the announcement was \u201clittle more than a publicity stunt.\u201d<\/p>\n\n\n\n
\u201cIt\u2019s no different than taking the proceeds of his regular paycheck and just buying Bitcoin for himself,\u201d Yermack said in an email.<\/p>\n\n\n\n
While the U.S. government and many states have been wary of cryptocurrency, a small number of cities and local officials have embraced it.<\/p>\n\n\n\n
Angela Walch, a professor at St. Mary\u2019s University\u2019s law school, said Adams and other politicians who have signaled support for cryptocurrency are trying to attract a wealthy new political constituency.<\/p>\n\n\n\n
\u201cIt\u2019s about showing allegiance to this industry, it\u2019s about saying that we want the industry to feel welcome and may be to bring jobs,\u201d she said.<\/p>\n\n\n\n
Miami Mayor Francis Suarez, a Republican, has been converting his salary to Bitcoin and tried to position his city as the hub of the cryptocurrency industry.<\/p>\n\n\n\n
Suarez, a friend of Adams, said in a speech this month as the new president of the U.S. Conference of Mayors that cities need to embrace the industry, and he asked mayors \u201cto sign on to a mayoral crypto compact.\u201d<\/p>\n\n\n\n
Suarez told The Associated Press in an interview in November that Adams\u2019 embrace of cryptocurrency shows he understands \u201ccities have to be on the forefront of innovation.\u201d<\/p>\n\n\n\n
A former tax collector for Seminole County, Florida, set up systems to accept cryptocurrency for property taxes payments and other fees, though no payments were ever accepted.<\/p>\n","protected":false},"excerpt":{"rendered":"
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