Representative of the US Democratic Party Reshma Patel presented a plan to restore the New York economy after the pandemic, including investments in blockchain and cryptocurrencies.
Reshma Patel is one of 12 candidates for the post of New York City Treasurer. She suggested that local pension funds invest up to 3% of their funds in cryptocurrencies. The city administration will also provide funds for the development of blockchain and fintech startups in New York. To do this, Patel intends to simplify the process of obtaining a BitLicense issued by the New York State Department of Financial Services (NYDFS). Firms that receive this license can legally provide their services to residents of the state.
“I am concerned about the long-term financial development of New York, especially against the backdrop of the pandemic. I am confident that investments in blockchain and cryptocurrencies will create conditions for the emergence of new businesses and jobs in the city. Blockchain will increase the efficiency of transactions and cryptoassets will change the way local pension funds operate, ”Patel said.
She explained that she sees a need to use blockchain to implement various procurement contracts, track supply chains and store financial data. Patel said the lack of transparency makes it difficult to budget, obtain a loan and work with the public. She believes that blockchain will speed up the interaction of the parties and provide data transparency. However, many of her proposals will require detailed discussion with the city administration and the government.
Patel admitted that if approved for the position, she would have to interact with trustees of pension funds on investment in cryptocurrencies, and this could be a daunting task. However, according to Patel, minimal investment in cryptocurrencies can protect pension funds from rising inflation or falling S&P 500 index.
Earlier, Grayscale Investments CEO Michael Sonnenshein suggested that the interest of pension funds in Bitcoin and other crypto-assets will only grow. For example, KiwiSaver Growth Strategy, a New Zealand pension fund, has already invested about $ 17 million in the first cryptocurrency.
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