Crypto-Friendly Miami Mayor Sees Potential for MiamiCoin to Support City Without People Paying Taxes | Currency News | Financial and business news
- MiamiCoin is a crypto launched in August that, when bought or mined, allocates 30% of its reward to the city.
- Mayor Francis Suarez hopes the new project will support Miami without its residents having to pay taxes.
- So far, the project has sent around $ 7.1 million to Miami, according to the Washington Post.
- See more stories on the Insider business page.
Miami Mayor Francis Suarez is hopeful that a new cryptocurrency project could one day support the city without its residents having to pay taxes.
MiamiCoin was launched in August using CityCoins, a nonprofit, open source protocol that offers investors a way to support their city by expanding their crypto cash flow while earning for themselves. When bought or mined, it allocates 30% of its reward to the city.
“When you think of the possibility of being able to run a government without citizens having to pay taxes. It’s amazing,” Suarez told the Washington Post.
Investors can win in two ways: mining (getting crypto by solving complex equations) and staking (earning rewards for holding certain types of crypto).
When they do one or both, they keep 70% of the reward. The remaining 30% automatically goes to the city.
So far, CityCoins have sent around $ 7.1 million to Miami, according to The Post, and Suarez believes MiamiCoin could generate as much as $ 60 million over the next year.
MiamiCoin, available on the Okcoin crypto exchange, is the first to launch a city-based token. San Francisco could soon follow, according to the CityCoins website.
CityCoins decided to launch urban tokens because it believes these will provide a “new, community-driven revenue stream for local governments while bringing collaborative technology to its citizens and ecosystem of stakeholders.”
Each city that accepts CityCoins will have its own digital wallet, the security of which will be managed by a third party. Tokens in the wallet can also be converted to US dollars.
“Each startup city will have its own CityCoin within two years in the United States,” Patrick Stanley, founder of CityCoins, told StateScoop. “The source code for CityCoins is open, so cities can create their own coins without asking CityCoins for help.”
Stanley said Miami was a natural fit due to the mayor’s openness to crypto. Suarez, who has quickly become a beloved figure in crypto circles, has quickly embraced digital assets over the past few months, ranging from hosting the world’s largest bitcoin gathering to courtesy of crypto miners for qu ‘they settle in his city.