Is Adams' Crypto Push a Bold Innovation or a Costly Distraction?

The words hang in the air like the smell of roasting chestnuts in December. As comfortable as they seem, there is an undertone of trepidation. Is this radical leap into the future? Or is it a dangerous gamble of taxpayer dollars that could leave New Yorkers holding the bag? You deserve to know what’s going on.

Is This A Trend Or True Progress?

Adams' enthusiasm for cryptocurrency is no secret. He's taken paychecks in Bitcoin, and now he's bringing in advisors like June Ou (Figure) and Richie Hecker (Traction and Scale) to explore digital assets for NYC's economic development. Is this real progress, or just pursuing a temporary flash in the pan? In public, he claims he’s playing the long game, avoiding short-term “memes.” In the crypto world, the line separating the two runs about as deep as a Wall Street bonus after a down quarter.

I picture my local bodega owner, just trying to keep his prices affordable while inflation climbs ever so higher. Is he going to suddenly accept Bitcoin? Are our public schools really going to be funded through Ethereum? It sounds like science fiction.

And that’s the problem. This all seems far removed from the daily, lived reality of New Yorkers. To solve this, we need permanent affordable housing, affordable, reliable public transportation, and pedestrian- and traffic-safe streets. We want the kind of solutions that all Americans can readily comprehend and utilize. Complex, evolving, and highly volatile asset classes only intimidate experienced investors and make understanding and investing difficult.

Could This Boost Local Businesses?

When communities embrace crypto, they see great benefits for local businesses. It gives underserved communities access to new capital, facilitates streamlined transactions and makes everyday operations more effective. How will the city be providing grant funding to assist businesses in transitioning to cryptocurrency payment systems? Will there be user-focused digital wallet trainings to make sure people know how to use their wallet and what’s stored in it? Or will this just produce a different set of winners and losers? Instead, like any other tech-heavy bill, it would enrich those who already understand the technology and further disadvantage the rest.

Consider the potential impact on financial inclusion. Cryptocurrency can, and should, serve as an alternative to the traditional banking system for underserved communities at least in theory. At the same time, it presents risks that far outweigh its benefits, such as fraud and scams, and extreme volatility. And are we doing enough to shelter our most vulnerable populations from these threats? Have we forgotten that the regulatory environment around crypto is still muddy at best, particularly with regard to DLT’s application?

This is not to lose sight of the corruption case against Adams that was thrown out earlier this year. Though not directly linked to crypto, it does foreshadow a lack of transparency and accountability that must concern us. Are we supposed to believe that the integrity of the city’s various crypto endeavors will be above reproach? In addition, what measures will be taken to prevent any future conflicts of interest?

Trump and Crypto: An Unexpected Connection?

Here's where things get interesting. In fact, Adams was said to have personally met with President Trump as recently as May to thank him for his “supportive words.” Trump, likewise, has made digital asset policies a cornerstone of his platform. Is there a connection? Are we witnessing a true bipartisan push to welcome finance’s new digital future? If not, it might reflect that something different is at play.

We need to ask ourselves:

• Who really benefits from this crypto push? Is it the average New Yorker, or is it a select group of investors and tech companies?
• What are the opportunity costs? Are we diverting resources from more pressing needs, like infrastructure improvements or affordable housing?
• Is this a genuine attempt to modernize NYC, or a way to generate headlines and attract attention?

It can be tempting to fall victim to the hoopla around cryptocurrency. But we’ve gotta look at this with a healthy dose of skepticism, particularly when it’s coming from politicians. If mayor Adams has, or indeed plans on, any such proposals he needs to be up front. He has real risks to heed and prove how this ambitious initiative will serve all New Yorkers, not just an elite few.

Otherwise, this bold innovation risks becoming a costly distraction.