NYC Needs a Crypto Credit Union

Rufus Wright
3 min readApr 20, 2021

No project is going to incorporate or set-up anywhere if the benefits don’t outweigh the costs, and when they do incorporate they are going to do so in the location that offers the most benefits to their project. This means that if NYC wants to attract crypto projects, the city must offer them something that they can’t get elsewhere.

Cryptocurrency projects exist outside the borders of cities, states, and even countries, can easily be operated anonymously and are based on mathematics. By their very nature, such projects do not require a physical presence and thus do not have the same requirements and incentives to incorporate that traditional businesses have. So why do so many crypto startups incorporate in Wyoming, or Singapore, or Switzerland? Because the benefits outweigh the costs. Incorporating in these locations provides the project with legitimacy, resources, or capital that they wouldn’t have otherwise.

If NYC wants to attract cryptopreneurs (crypto industry entrepreneurs), it is going to have to offer something attractive. Currently, any startup in the crypto space faces incredible difficulty accessing capital through traditional means, which drives them into shadow markets and unregulated sources of financing. In fact, at this time the primary ways that companies have been able to access capital have been to either be founded by independently wealthy individuals or participate in legally and morally dubious ICOs. If financial regulators want to decrease the prevalence of such ICOs, then they are going to have to provide alternatives. And if New York City wants to lead the world in finance in the 21st century, it will have to lead the world in crypto.

Why a Crypto Credit Union is the solution for NYC:

Competitive advantage, plain and simple. Economic theory teaches us if everyone focuses on whatever they’re the best at and we all trade, then we are all better off. Well, New York City is the world’s banking hub! If New York wants to attract crypto startups then it should do what it does best and bank them. NYC already has the capital, institutions, framework, and existing systems perfectly designed to support a cryptocurrency credit union. Such an institution would go a long way to attract the best cryptopreneurs out there.

Benefits of the NYCCCU

  1. Fight Money Laundering: