The broader crypto market has been on a slump lately with both Bitcoin and Ether witnessing steep price corrections over the past 24 hours and Eric Adams, the recently sworn-in Democrat mayor of New York City, has confirmed that his first paycheck will be converted into crypto, buying the dip. It’s not only Bitcoin he is going to receive either. As per an announcement by the mayor’s office, Adams is also set to get a part of his salary in Ether, the world’s second-largest cryptocurrency by market capitalisation.
“New York is the centre of the world, and we want it to be the centre of cryptocurrency and other financial innovations,” Adams said in a statement. Adams, a former member of the New York State Senate, said that by receiving his salary in crypto, he wants to show that New York is “on the forefront” of innovation and continues “to be a magnet for talent from all over the globe.”
The US Department of Labor regulations prohibits the city from paying its employees directly in cryptocurrencies. However, it is possible to use a digital asset exchange to convert US dollars into crypto before the funds are made available. To that end, Adams’ office chose Coinbase, the largest regulated crypto exchange in the US, to make the transaction.
Cryptocurrencies made up a big part of Adams’ election campaign last year. “We’re going to become the centre of life science, the centre of cybersecurity, the centre of self-driving cars, drones, the centre of Bitcoins,” he said while running for the seat. Adams also made sure New York had its own CityCoin: a cryptocurrency project that allows people to invest in a city by buying tokens.
Adams during his acceptance speech on November 2, 2021, expressed his admiration for cryptocurrencies and followed in the footsteps of Miami Mayor Francis Suarez to receive his first few paychecks in Bitcoin. He promised to make New York a crypto hub creating job opportunities in this flourishing industry. Prior to him being sworn in, Adams also spoke about how children should study blockchain technology and digital assets at schools during an interview.