New York City Mayor Eric Adams has established a municipal Office of Digital Assets and Blockchain Technology. The announcement, made on Tuesday, aims to solidify his commitment to cryptocurrency and blockchain initiatives during the final months of his term.

The executive order to create the new office came three months before Mayor Adams is expected to leave office. Polls indicate that Andrew Cuomo is currently leading the Democratic mayoral primary race and is expected to replace Adams next year.

Earlier this year, Adams launched a Digital Assets Advisory Council during the city's inaugural Crypto and Digital Assets Summit at Gracie Mansion. The council is designed to guide the city's strategy regarding digital assets and blockchain innovation, with the goals of attracting fintech jobs and integrating blockchain technology into city services. Adams has emphasized the focus on practical applications, citing projects such as the use of blockchain for managing vital records like death certificates.

Mayor Adams, who has been called the "Bitcoin Mayor," previously revealed that he took his first three paychecks in Bitcoin. This action signals a shift from New York's historically strict cryptocurrency regulations, such as the 2015 BitLicense. Adams has advocated for reducing regulatory barriers to encourage crypto companies to establish themselves in the city. He has also called for the repeal of New York State's BitLicense, a framework introduced in 2015 that has been criticized for its stringent requirements and high costs to crypto businesses.

In addition to regulatory reforms, Mayor Adams proposed the creation of a "BitBond", a municipal bond backed by Bitcoin. This financial instrument would allow investors to gain exposure to Bitcoin while supporting city projects.

These initiatives reflect the city's ambition to become a leading hub for cryptocurrency and blockchain innovation. The administration hopes to foster innovation, attract investment, and ensure New York City remains a leader in the evolving financial landscape. Potential applications of blockchain technology within city services also include enabling the payment of city taxes and fines using cryptocurrencies. These initiatives aim to modernize city operations and enhance transparency and efficiency.