Fact Check: "Mayor Eric Adams stated that cryptocurrency could be used to send money abroad without paying exorbitant fees, specifically mentioning Bitcoin as a viable option."
What We Know
New York City Mayor Eric Adams has expressed strong support for cryptocurrency, indicating a desire for New York to become a hub for financial innovation. In January 2022, he announced that his first paycheck would be automatically converted into Bitcoin and Ethereum, stating, "New York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations" (source-1). This move was part of a broader initiative to promote cryptocurrency as a means of financial empowerment and accessibility.
Adams has also suggested that cryptocurrency could be a solution for reducing transaction fees associated with sending money abroad, aligning with the general perception that cryptocurrencies can facilitate lower-cost international remittances compared to traditional banking methods (source-5).
Analysis
The claim that Mayor Adams mentioned cryptocurrency, particularly Bitcoin, as a viable option for sending money abroad without exorbitant fees is partially true. While he has indeed promoted the use of cryptocurrency for various financial transactions, including remittances, the specifics of his statements regarding Bitcoin as a low-fee option for international money transfers are less clear in the available sources.
Adams's advocacy for cryptocurrency is evident, and he has positioned himself as a proponent of its potential benefits. However, the reliability of his assertions about the cost-effectiveness of cryptocurrency for international transfers should be scrutinized. The volatility of cryptocurrencies like Bitcoin can lead to significant fluctuations in value, which may negate the perceived benefits of lower transaction fees (source-3).
Additionally, while some proponents argue that cryptocurrencies can reduce fees, critics point out that the infrastructure for using cryptocurrencies for remittances is still developing, and users may face other costs, such as exchange fees and transaction fees on platforms like Coinbase (source-4).
Moreover, the Comptroller of New York City, Brad Lander, has expressed skepticism about the stability of cryptocurrencies, suggesting that they may not be suitable for financing city infrastructure or other essential services (source-2). This indicates a divide in opinion regarding the reliability and practicality of using cryptocurrencies for significant financial transactions.
Conclusion
The claim that Mayor Eric Adams stated cryptocurrency could be used to send money abroad without paying exorbitant fees, specifically mentioning Bitcoin, is Partially True. While he has indeed advocated for the use of cryptocurrency and its potential benefits, including lower transaction fees for remittances, the complexities and risks associated with cryptocurrencies complicate the assertion. His statements reflect a broader enthusiasm for cryptocurrency rather than a definitive endorsement of Bitcoin as a low-cost solution for international money transfers.
