The rise of crypto mayors

Scott Conger, the mayor of Jackson, Tenn., campaigned on a modest promise to improve local infrastructure. He planned to build sidewalks, open a senior center and repair the aging storm-water disposal system in his city of 68,000, about halfway between Nashville and Memphis. But as he begins his fourth year in office, Mr. Conger, 38, has adopted a new favorite cause: cryptocurrencies. He has pledged to give city employees the option of converting their paychecks into Bitcoin and has outlined plans to install a digital mining network in a deserted wing of City Hall. The aim, he said, is to make Jackson a Southeastern tech center. Like many Americans, Mr. Conger discovered crypto during the pandemic and soon fell down an internet rabbit hole. His plans have turned him into something of a celebrity in the crypto world, a strange distinction for the leader of a midsize industrial hub where Pringles potato chips are manufactured.

“Bitcoin is a great financial equalizer,” Mr. Conger declared this month in an interview at City Hall. “It’s a hedge against inflation. It can bridge that wealth gap.” The ballooning popularity of Bitcoin and other digital currencies has given rise to a strange new political breed: the crypto mayor. Eric Adams, New York’s new mayor, accepted his first paycheck in Bitcoin and another cryptocurrency, Ether. Francis Suarez, Miami’s mayor, headlines crypto conferences. Now even mayors of smaller towns are trying to incorporate crypto into municipal government, courting start-ups and experimenting with buzzy new technologies like nonfungible tokens, or NFTs, to raise money for public projects. Their growing ranks reflect the increasing mainstream acceptance of digital currencies, which are highly volatile and have fallen in value in recent days. The mayors’ embrace of crypto is also a recognition that its underlying blockchain technology — essentially a distributed ledger system — may create new revenue streams for cities and reshape some basic functions of local government. “Mayors rationally want to attract high-income citizens who pay their taxes and impose few costs on the municipality,” said Joseph Grundfest, a business professor at Stanford. “Crypto geeks fit this bill perfectly.”