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In a fascinatingly capitalist move, the City of Miami, Florida has launched its own cryptocurrency in August 2021. City officials expect that the remarkable initiative will generate the city millions of dollars in revenue. Mayor Francis Suarez told the press that Miami is now the “Bitcoin capital of the world” and that they are now partnering with the company CityCoins to make their own crypto that will be known as MiamiCoin(MIA).
According to WJTV CBS12,
“CityCoins is contracting with local governments to build up a treasury of their own version of coin, a new digital currency, in cities around the world.
In Miami, 30% of the revenue from MiamiCoin will go to the city’s general fund, creating a continuous stream of revenue that can be put towards investments like infrastructure projects, city events, and recruiting startup companies.”
The currency became available for mining as of August 3rd, and Mayor Suarez has encouraged bitcoin miners to move from China to Miami in order to avoid Beijing’s crackdown on crypto. As more cities in the US follow suit, like San Francisco which is currently considering their own coin, the United States will be poised to lead a monetary revolution of sorts.
The Anatomy of A City-Based CryptoCurrency in 2021
So how does the MiamiCoin stack up in the odd space of city-based currency which the world hasn’t seen since the ancient day of the city-states?
According to CoinDesk,
“MIA runs on the Stacks protocol, which in turn runs on top of the Bitcoin network. People can “mine” MIA by sending STX, the native token of Stacks, to a smart contract, which forwards 30% of those contributions to a wallet reserved for the city. Last month, the city voted to accept those funds, now worth $7 million. Suarez said Thursday the project is generating over $2,000 every 10 minutes for the municipality.”
Since its launch over a month ago, the crypto reached an all-time high of $.06 and is currently fluctuating between $.0316 and four cents. The coin is only listed on Okcoin at the moment and they are advertising an “estimated” (Not Guaranteed) 430% yield according to CoinBase. But Mayor Suarez didn’t seem convinced, “I don’t know exactly how they earn that yield,” Suarez said. “Maybe you can try it out with a dollar and see if you get that kind of a yield, and it works or not.”
The current Miami City Wallet balance is valued at $7,023,524.68 (5,425,201.51 STX): https://t.co/Q3okJhAubi pic.twitter.com/DC5UaF6bvX
— MiamiCoin City Wallet (@MiamiCoinWallet) September 26, 2021
Nothing is ever guaranteed in the world of crypto, but as the world of decentralized banking evolves and more cities elect to create their own cryptos we could realistically see an earnest challenge to the Dollar. Should that occur, the regulator environment may change quickly. So it’s best to stay conservative and as Suarez said “Maybe you can try it out with a dollar”
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