NEW YORK — Aiming to grow to be the town’s high monetary officer, Democrat Reshma Patel on Wednesday night defended proposing a small portion of the town’s pension funds be invested in cryptocurrencies, arguing some states have seen success with such a transfer.
In an interview with “Inside Metropolis Corridor” Anchor Errol Louis on Wednesday night time, Patel, a candidate for metropolis comptroller who was as soon as a monetary advisor for the workplace, urged the trustees of the New York Metropolis Staff’ Retirement Methods to allocate between 1 to three% of their belongings into cryptocurrencies like Bitcoin and Ethereum.
Patel cited success tales from pension funds in different states that adopted related cryptocurrency methods, whereas positioning the funding as a hedge in opposition to inflation or a possible downturn in conventional inventory markets.
“There are two pension funds in Virginia which had invested in a blockchain fund two years in the past after which they elevated that as a result of the returns had carried out properly,” Patel mentioned.
Whereas Patel acknowledged the volatility of cryptocurrency markets, she countered that conventional inventory markets additionally see intervals of comparatively excessive danger, too.
“I perceive there’s danger — particularly in the previous couple of weeks there’s been large danger on this — however final March we had plenty of danger within the S&P  as properly,” Patel defined.
Patel additionally vowed to develop the town’s digital banking efforts, particularly in weak, low-income communities, with the intention to guarantee all New Yorkers have entry to monetary companies. Tons of of hundreds of New Yorkers should not have a checking account.
Patel additionally emphasised her means to execute monetary methods, citing her years in public finance, in addition to the significance of variety in authorities.
“I imagine that we’ve got plenty of nice coverage initiatives in our metropolis, however we frequently fail with regards to implementation, and this previous 12 months actually confirmed the fault traces in our metropolis authorities. It confirmed that we are able to’t have enterprise as normal,” Patel mentioned. “I imagine we’d like extra variety in our metropolis authorities’s management. I imagine we’d like extra ladies and I feel we’d like folks, within the function of comptroller particularly, who’ve the technical experience, which I do.”
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