Candidate of NYC Comptroller Proposes Investing 1%-3% of Pension Funds in Crypto
- Reshma Patel, a candidate for the New York City Comptroller, launched her proposal to introduce policies around blockchain technology and cryptocurrencies to the Big Apple.
In a proposal shared on Monday, Patel highlighted new policies and investment strategies to get New York back on track following a COVID-ridden year. In her proposal, Patel unveiled blockchain-specific aspects to her recovery plan, including adopting blockchain in the procurement system, researching new investments to blockchain funds, and investing a portion of the pension funds in crypto.
The Big Apple has suffered financially in the past year as COVID-19 ravaged businesses across the city. The incoming Comptroller will have a major task of getting the city back on track and a look towards blockchain and crypto could be the trick. Reshma Patel said,
“New York City has always been a leader in embracing innovation and progress,”
“That's why as Comptroller, I would make it a priority to explore all options that technology has made available to us as we try to build back after COVID-19. I believe that cryptocurrency and blockchain offer untapped opportunities for the City that we can't just ignore.”
The Comptroller oversees how the city allocates its funds by managing the government contracts and retirement funds. Patel aims to create a long-term recovery plan for NYC if she becomes Comptroller crypto and blockchain-based businesses at the core of her plans.
Under Patel’s policies, NYC will “work with the Trustees of the five New York City Retirement Systems” to invest up to 3% of the funds in top cryptos such as Bitcoin and Ethereum. The investment in crypto aims to help the city fight inflation and provide a hedge if the S&P 500 falls. She said,
“With inflation expected to rise in the next few years, and bitcoin expected to continue its checkered but consistent upswing to “the moon,” a minimal allocation to the most dominant of all cryptocurrencies can help diversify and protect the City’s pension fund investments.”
“It will help guard against any potential downswings in the stock market while helping us capture the upswings of an emerging technology.”
Additionally, the proposal also plans to form a public-private task force to research a possible investment in “blockchain-specific funds.” The task force will research direct ways of investing in blockchain technology to “capture enhanced returns and support New York City-based fintech start-ups while learning more about how this cutting-edge technology can help New York City residents.”
She further proposes integrating blockchain technology systems and solutions in the procurement system across NYC. The procurement system in NYC faces a slow, convoluted process creating barriers for firms and businesses operating in the city. As a transparent and public network, implementing blockchains could treat these common problems related to tracking contracts, the statement reads. Patel said,
“A standardized system with fast-acting responses would make the contracts more accessible for smaller firms and require less bureaucracy to move projects forward.”
“A blockchain-based procurement system would provide better visibility and accountability by utilizing a fully transparent process that will also improve trust in our government.”