As of now, Eric Adams was sworn in as the new mayor of New York City. As someone who likes Bitcoin, you may have heard that he is one of their friends.
In the footsteps of Miami Mayor Francis Suarez, Mayor Adams said that he would take his first three paychecks in bitcoin (BTC), following in his footsteps. Well, New York has a lot of rules that make it hard for him to get that salary in bitcoin right away.
Sadly, more than anything, his good intentions show the Empire State’s many anti-cryptocurrency policies better than any other thing.
Bitcoin Major Strike
Strike is the most popular bitcoin payment instrument. Some of the world’s most famous people, including Russell Okung of the National Football League, use Strike to securely receive bitcoin payments. Strike also helps inhabitants of El Salvador, the first country to accept bitcoin as payment.
So, I assumed Mayor Adams would employ Strike to collect his bitcoins. Not available in New York, thus my assumption was incorrect. Indeed, as the mayor’s office told New York Magazine’s Kevin Dugan, He will collect his payment in dollars and swap it for bitcoin.
A sigh. It takes longer to convert his salary to bitcoin than to receive it instantaneously, and he pays more transaction costs. If he uses Coinbase, the most popular exchange in the US, the commission costs might be as high as 2%.
The Strike ban initially appeared when I tried to link my Bitcoin tip jar to Twitter. The tip jar would provide Twitter’s 200 million users a Bitcoin wallet. To utilize the feature, you need access to Strike, which is prohibited in New York and Hawaii. It’s odd that only two states have banned it. Honolulu is not the world’s financial capital. But if you live in New York, you can’t participate in the booming crypto market.
Strike isn’t the only big crypto firm missing from New York. The state forbids Binance, the world’s largest bitcoin exchange. This implies that New Yorkers are digitally behind. The state’s aversion to bitcoin is one reason for its tardiness. After the demise of Silk Road in 2015, bitcoin became a pariah. As a result, New York State banned blockchain companies from operating in the state.
It made the BitLicense. Alex Adelman and Aubrey Strobel criticize the BitLicense, calling it flawed. For example, it costs over $100,000, which most early-stage enterprises cannot afford. A 30-page application, $5,000 charge, tens of thousands of man hours, and seven years of accounting and records are required. Most of the 20 companies awarded BitLicenses are large corporations. Residents in the world’s most important money-making locations cannot launch firms in one of the fastest-growing investment categories.
The situation in New York reflects the growing rift in the cryptocurrency ecosystem. People want to expand on Satoshi Nakamoto’s ambition of creating an alternative financial system for people who don’t want to lose 5% of their wealth to inflation every year. Also, a group aims to use crypto to create complex financial products.
Some New York hedge funds are creating non-fungible token credit derivatives that resemble the mortgage-backed securities that sparked the 2008 financial and housing crisis. Creating an ecology for the people and producing money for the rich is a battleground in New York.
According to New York Attorney General Letitia James, if you don’t follow the rules, they will shut you down. However, New York’s policies are founded on a completely erroneous and outmoded concept. Bitcoin has long fascinated Mayor Adams. Now is the moment to put words into action. In a word, the mayor must fight the red tape that prevents the use of blockchain in this city and state. In this manner, the city and state can participate in the future digital economy.
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