New York City Mayor Eric Adams is undeterred by the collapse of crypto exchange FTX and heavy market sell-offs. He insists on the importance of embracing the space, saying, “Crypto is coming if we like it or not; all of these industries have ups and down.”
Adams on FTX Collapse and the Importance of Embracing Crypto
The comments came during a Q&A session on Tuesday at the Manhattan Family Justice Center surrounding the collapse of the Sam Bankman-Fried-owned FTX. The interviewer sought to establish whether the FTX debacle affected the NYC Mayor’s stance on crypto.
On whether he regrets supporting Bitcoin and whether New York City should keep promoting the crypto industry, Mayor Adams said he believes in technology and the whole thought of using crypto, blockchain currency, and cyber wallets. In his words:
“We need to move into this space. This space is coming whether we like it or not.”
The mayor also added, “When I hear people say, ‘Well, look how much money an individual lost in cryptocurrency,’ you know how much money I lost in the stock market?” Sharing that he is sometimes afraid of looking at his retirement investments nowadays.
From the mayor’s description, the crypto and stock industries have “ups and downs,” noting that there are always people looking to exploit such sectors. He referenced “The junk bond kings,” who pulled a hoax in the stock market and penny bonds.
Crypto Industry Will Stand
According to the NYC mayor, the fact that the crypto industry reaches low points sometimes does not mean it is going away. Articulating his resolve to lean further into blockchain and other technologies, he said, “We must embrace crypto.”
Adams also expressed his belief in the new markets and the new currencies, saying he encourages the young folk to learn about them and disclosed participating in a crypto summit in partnership with the owners of the New York Nets. During the event, the mayor of New York City brought young people in to learn about the crypto and stock industries.
In January, Adams said that he wants New York City “to be the center of cryptocurrency and other financial innovations.” During the announcement, the mayor insisted on the value of being at the forefront of such innovations, citing it could help in job creation, bolster the economy, and serve as a magnet for talent from across the world.
He is a big proponent for Bitcoin and crypto in general, and proved this by his actions converting some of his paychecks into Bitcoin (BTC) and Ethereum (ETH) earlier this year as a show that “New York City is open to technology.”
He made good on a promise in November 2021 when he assumed office that he would take his first three paychecks in bitcoin. The commitment had been challenged by the city itself, saying:
“Due to U.S. Department of Labor regulations, New York City cannot pay employees in cryptocurrency. Anyone paid in U.S. dollars can have funds converted into cryptocurrency by using a cryptocurrency exchange before funds are deposited into their account.”
However, before the funds were made available, the mayor’s first paycheck was automatically converted into crypto via Coinbase. He also said in November of the same year that he wanted schools to teach crypto, noting that bitcoin is a new way to pay for goods and services.
In January, when the BTC price fell to the $41K level, Mayor Adams noted that sometimes the best time to buy is when things go down so that when they recover, you would have made a good profit.