Cities That Hyped Crypto Are Now Contending With the Crash
This month's cryptocurrency market meltdown is raising new questions about how far local governments and public officials should go getting involved with the virtual asset.
Back-to-back losses totaling more than $1 trillion in the cryptocurrency market have bolstered scrutiny around the efforts of Miami, New York, Austin and other cities to incorporate the digital currency into municipal operations.
“People tend to ask more questions when things aren’t making money,” said Michael Bloomberg, a visiting researcher in the Urban Tech Hub at Cornell Tech. “That’s true both of city governments and also … of the press. … Once you put that scrutiny on there, we’re likely to see more controversy over more [cryptocurrency] projects.” Bloomberg (not to be confused with the billionaire businessman) is the former chief of staff to the mayor of Holyoke, Massachusetts.