New York City Mayor receives his first paycheck in crypto
Back in November, Eric Adams promised that he would take his first three paychecks as the mayor of New York City in cryptocurrency. However, since he was sworn in on January 1, it took a while for him to finally keep that promise. This week, he became the first mayor of the Big Apple to be paid using crypto.
While this seems simple at first sight, there were a few legal twists involved. According to US Department of Labor rules, New York City staff cannot be paid in cryptocurrency. On the other hand, "anyone paid in U.S. dollars can have funds converted into cryptocurrency before funds are deposited into their account."
In this case, the official press release reveals that "Mayor Adams’ first paycheck will automatically be converted into cryptocurrency via Coinbase, a secure online platform for buying, selling, transferring, and storing digital currency." This month's salary was converted to Ethereum and Bitcoin, but he might choose other coins for the next two paychecks (not stated in the press release, but possible).
The mayor's support of crypto came under fire by New York Finger Lakes environmental non-profit Seneca Lake Guardian, which said in a statement that "Mayor 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 CO2 emissions."
As Eric Adams aims to turn New York City into a "center of cryptocurrency and other financial innovations" in addition to it already being "the center of the world," the entire crypto market is struggling with a sharp drop. According to CoinMarketCap, Bitcoin is now at roughly US$35,000 (a drop of 18.5 percent over the last 7 days) and Ethereum is doing even worse, with a value of US$2,400 which translates to a drop of almost 28 percent for the same period.
Mayor Adams to Receive First Paycheck in Cryptocurrency
January 20, 2022
Paycheck to Be Automatically Converted Into Bitcoin and Ethereum
NEW YORK – New York City Mayor Eric Adams today announced that his first paycheck — which arrives tomorrow — will be automatically converted into cryptocurrency, as previously promised. The salary will be converted to Ethereum and Bitcoin.
“New York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations,” said Mayor Adams. “Being 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.”
“From being the primary means by which we close both the digital and financial divide, technology continues to be the great equalizer, said New York City Chief Technology Officer Matt Fraser. “This step taken by the mayor provides a leading example of how we can empower people through tech with a more diverse set of options to manage their finances.”
Before funds are made available, Mayor Adams’ first paycheck will automatically be converted into cryptocurrency via Coinbase, a secure online platform for buying, selling, transferring, and storing digital currency.
Last November, Mayor Adams announced he would accept his first three paychecks in cryptocurrency. Due to U.S. Department of Labor regulations, New York City cannot pay employees in cryptocurrency. By using a cryptocurrency exchange, anyone paid in U.S. dollars can have funds converted into cryptocurrency before funds are deposited into their account.
Cryptocurrencies are at the forefront of Web3innovations and can bring greater accessibility to financial services.