City Comptroller Candidate Says Blockchain Is in New York’s Future

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New York Metropolis must assume creatively about its post-pandemic restoration, says a candidate for metropolis comptroller. This consists of investments within the metropolis’s blockchain trade. 

Reshma Patel, a Democratic candidate for town’s chief monetary officer place, unveiled a “future proof” plan for New York on Monday centered round investments in blockchain companies and cryptocurrencies. There are 12 candidates for the workplace, together with 10 different Democrats, in keeping with Ballotpedia.

“My purpose for working for comptroller is I’m involved concerning the long-term monetary well being of New York Metropolis, particularly after the COVID-19 pandemic,” Patel advised CoinDesk. 

She hopes that her proposal, if enacted, would enhance town’s effectivity in approving contracts, spur new companies to function inside the metropolis and diversify native pension funds. 

Phemex

Below Patel’s plan, New York’s 5 retirement techniques would make investments as much as 3% of their funds into cryptocurrencies, town itself would spend money on funds with blockchain publicity to assist help fintech startups and New York would make the most of a blockchain-based system for its procurement contracts. Patel additionally desires to work with the New York Division of Monetary Companies to streamline the BitLicense.

She sees tangible advantages in adopting a blockchain system to trace and replace procurement contracts. The comptroller’s workplace sometimes has 30 days to approve a contract, however relying on the venture, totally different entities inside the metropolis authorities might should weigh in. 

Patel stated monitoring modifications and funds points on a decentralized ledger would make it simpler for various events to be concerned whereas sustaining transparency across the course of. 

An absence of transparency at the moment makes it troublesome to funds, take out loans or work with neighborhood efforts, she stated, citing private expertise from her work in the city.

Headwinds

A lot of Patel’s proposals would require dialogue and buy-in from totally different components of town or state equipment, she stated. 

Patel acknowledged that the comptroller must work with the pension funds’ trustees to spend money on crypto in any respect, and that this can be a troublesome proposition.

“Because the custodian of town’s 5 pension funds, the comptroller has the fiduciary duty to handle these funds,” she stated. 

In her view, this implies guaranteeing correct danger administration is in place, however she sees investing in crypto as an applicable hedge towards potential inflation or the S&P 500 dropping.

“With inflation anticipated to rise within the subsequent few years, and bitcoin anticipated to proceed its checkered however constant upswing to ‘the moon,’ a minimal allocation to probably the most dominant of all cryptocurrencies will help diversify and shield the Metropolis’s pension fund investments,” the proposal reads.

Different points embrace cryptocurrencies’ environmental impression. The present metropolis comptroller, Scott Stringer, introduced a plan to divest from fossil fuels earlier this yr, citing injury from local weather change. 

The local weather impression of cryptocurrencies have been under scrutiny amid the current bull run and development of merchandise like non-fungible tokens. 

Patel believes {that a} transfer towards renewable power sources, significantly in New York, is possible. 

“Town has already made a dedication to divest from fossil fuels, and that may be a dedication I might uphold,” Patel stated. “This can be a monetary innovation and it’ll get extra secure and dependable and sustainable over time, and the one technique to make it extra sustainable is to have interaction with it.”



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