- MiamiCoin is based on open-source network of decentralised apps and smart contracts that leverage the Bitcoin blockchain
- The money will be used for projects including reducing climate change risks, sponsoring efforts for underserved communities
- Citizens to pay municipal taxes using cryptocurrencies like Bitcoin
- Residents will not have to pay a cent in tax, if city specific crypto becomes successful
Mayor Francis Suarez of Miami has been praising the success of a recent plan to fund municipal projects with the proceeds of a city-specific crypto protocol based on the Bitcoin blockchain.
Miami’s city commissioners approved on September 13 to accept cash created by MiamiCoin, a new cryptocurrency established by CityCoins in August. The coin is based on Stacks, an open-source network of decentralised apps and smart contracts that leverage the Bitcoin blockchain as a programmable foundation.
The requirement that 30% of all coins mined be routed to a digital wallet designated for the city is hard-coded into MiamiCoin’s protocol. The money will be used for projects including reducing climate change risks, sponsoring efforts for underserved communities, and investing in crypto education for digital entrepreneurs.
Last week, Fox Business calculated that every 10 minutes, about $2,500 worth of Stacks (STX) at its $1.50 value were put into the city’s wallet. Mayor Suarez corroborated the ballpark amount, saying that mining earnings generated over $2,000 every 10 minutes and over $5 million in the last 30 days.
Spending with care
The Miami City Commission did not vote to use the money raised since August when they voted to accept them. Instead, it received the revenues in US dollars and would put them aside for future municipal spending. The city does not have direct custody of cryptocurrencies because it is converted into fiat currency. Suarez remarked, It’s intriguing because it’s not an involuntary tax, it’s not philanthropy. It’s something entirely new that has the potential to change the way governments are supported in the future.
It is theoretically possible that the city might earn enough taxes through MiamiCoin that our people would not have to pay a single cent in taxes, he continued. According to statistics given by Antonio Delgado, vice president of innovation and technology partnerships at Miami Dade College, other measures appear to imply that Miami has been garnering more IT job posts during the summer.
A Miami-Dade County commissioner sponsored a motion this spring that would allow citizens to pay municipal taxes using cryptocurrencies like Bitcoin, in keeping with Mayor Suarez’s various pro-crypto efforts. In February, the mayor proposed an official resolution that would allow Bitcoin to be accepted as a payment method in several sectors of the local administration. Rather than taking immediate action to execute the suggestion, the commission agreed to evaluate its feasibility.