Department of Labor rules mean that Adams cannot directly receive his paycheck in crypto, meaning the funds have to go through Coinbase first.
The new mayor of New York City is receiving his first paycheck today — and has confirmed that it's automatically being converted into Bitcoin and Ether.
Back in November, Eric Adams had vowed to take his first three paychecks in crypto — upstaging Miami's mayor Francis Suarez, who had merely offered to take just one of his salary payments in BTC.
All of this comes as both men vie to build the crypto-friendliest cities in America, firm in the belief that supporting the industry is key to unlocking innovation, wealth and prosperity.
Department of Labor rules mean that Adams cannot directly receive his paycheck in crypto, meaning the funds have to go through Coinbase first. In a statement, the new mayor added:
"New York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations. 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."
And NYC's chief technology officer, Matt Fraser, added:
"From being the primary means by which we close both the digital and financial divide, technology continues to be the great equalizer. 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."
A Baptism of Fire?
Adams might have dodged a bullet with this first paycheck.
Assuming that the conversion into crypto took place at midnight New York time, the mayor would have inadvertently managed to buy the dip.
Crypto paychecks remain relatively niche, despite increasing levels of adoption over recent months.
Late last year, Coinbase unveiled a new feature that allows users to deposit their paychecks straight into their accounts — enabling conversions to be made into dozens of coins without transaction fees. The company also confirmed that it plans to make it easier for businesses to pay their employees using digital assets.
But given how Bitcoin can easily lose 10% or more of its value in a single day, and the number of merchants who accept it as a payment method remains extremely limited, crypto paychecks remain impractical for most everyday consumers.