New York City Comptroller Brad Lander has publicly slammed Mayor Eric Adams’ plan to issue municipal bonds backed by bitcoin, describing it as “legally questionable and financially reckless.”

The “BitBond” concept, unveiled by Adams at a recent bitcoin conference in Las Vegas, aims to raise funds for city projects by tying some bond proceeds to cryptocurrency. However, Lander, who co-manages the city’s debt, warned that such a move could damage New York’s credit standing and unsettle investors.

“Cryptocurrencies lack the stability needed to support critical city investments in infrastructure, affordable housing, and schools,” Lander said in a statement. He also highlighted potential conflicts with federal tax laws as another major risk.

Mayor Adams has been actively promoting New York as a leading crypto hub, including pioneering efforts like paying city workers in digital assets and establishing a digital advisory council. But Lander emphasized that the city’s current borrowing practices rely on the U.S. dollar, and transitioning to bitcoin-backed bonds would require financial structures and safeguards the city does not yet have in place.