Adams, mayor of the city of New York, announced that he will receive his first salary in Bitcoin and Ethereum this Friday. The $21,562 corresponding to Adams’ salary will not be paid directly in cryptocurrencies. Instead, Adams will first receive dollars, which he will then convert to BTC and ETH via the popular Coinbase exchange.
As mayor-elect, Adams promised to cash the first three paychecks in cryptocurrency.
«We are excited to see New York Mayor Eric Adams receiving his first salary in cryptocurrency. This is a sign that the financial capital of the world is open to crypto innovation.» Said Diogo Monica, president of Anchorage Digital.
Adams has expressed his intentions to build a crypto hub in the United States. Competing with the mayor of Miami, Francis Suarez, who also said that he would accept his next salary in Bitcoin.
«Today, New York is the center of the world and we want it to be the center of cryptocurrencies and other new financial innovations. Being at the forefront of such innovations will help us create jobs, improve our economy and continue to be a magnet for global talent.» said Adams in the release this Thursday.
Despite the efforts of the mayor of New York, what Adams could do as mayor to support greater adoption of cryptocurrencies is limited. New York businesses are subject to one of the strictest regulatory regimes in the United States and this is something where Adams has no power. Likewise, Adams added that the city cannot pay employees directly in cryptocurrencies. Due to the strong regulations of the United States Department of Labor (DOL).
Russia announced crackdown on cryptocurrencies
This Thursday, January 20, the Central Bank of Russia proposed a complete ban on mining and trading of cryptocurrencies. Due to this, the price of the main cryptocurrencies was affected.
Today, at the time of advertisement, Bitcoin is down 4.72% at $38,750. This, when Russia, which is home to roughly 12% of global BTC mining activities, said that cryptocurrencies “bear the hallmarks of a pyramid scheme” and “could pose a threat to the country’s financial system.”
A proclamation from China last year, which had previously instituted a similar ban, triggered a massive market sell-off, because it was seen as a major regulatory move, affecting many mining operations.
«Bitcoin mining is certainly growing much faster than what could be lost due to the Russian ban. This is a way of saying that cryptocurrencies are in a more mature stage at the moment.» commented David Tawil, President of ProChain Capital.
However, not all opinions are positive. «The impact of this decision will be significant. First of all, at the very least, it will cause an immediate reaction in the cryptocurrency market, and our recent research shows that these types of events and announcements increase both price and political uncertainty in the markets. Second, it will cause new miner migration processes and changes in the Bitcoin mining landscape.» said Larisa Yarovaya, associate professor of finance at the University of Southampton.