Officials in New York City will issue bonds that are linked to Bitcoin, which they will refer to as BitBonds.
Eric Adams thinks BitBonds will contribute to NYC becoming a leading city in the world of cryptocurrencies.
State regulations for BitLicense could stand in the way of launching these Bitcoin-backed financial products.
New York City is about to launch a fresh financial tool tied to Bitcoin. The plan was announced by Mayor Adams on the keynote stage at the Bitcoin 2025 conference held in Las Vegas.
Adams revealed that New York City plans to issue BitBonds, its name for bonds backed by Bitcoin. They are created for people who own Bitcoins and want to invest in US assets, authorized by the government.
As Adams explained, BitBonds will be set up with Bitcoin as security for the loan. Nonetheless, it is not clear yet whether investors will be paid in Bitcoin or their regular currency.
The City is Making a Strong Effort to Expand Use of Crypto
According to the mayor, this step forms part of his goal to make New York City a top city in the world of cryptocurrencies. He pointed out that BitBonds are an important step towards helping digital asset holders fit into the city’s financial system.
Adams recently launched the Crypto Council to guide policy, investment, and education related to blockchain and digital assets in Miami.
The future of currency is said to be represented by Bitcoin.
While speaking, Adams highlighted the ways money has changed throughout history. He linked Bitcoin with previous types of money, such as shells and coins, and suggested that it is the natural progression toward future forms of finance.
There is excitement, but the project may be stopped by regulatory challenges. Companies in New York that deal with cryptocurrency must get a BitLicense from the state. No one knows for certain what effects this requirement will have on the city’s ability to create Bitcoin-backed municipal bonds.
Nevertheless, Adams was sure that with resilience, the city could take the lead in developing crypto-financed infrastructure.
The news follows years of impressive growth in Bitcoin’s market activity. Early this month, Bitcoin hit an all-time peak of $111,970 thanks to demand from both large investors and regular customers.
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