MiamiCoin, the city of Miami’s official cryptocurrency, has already generated nearly $1 million for the city.
MiamiCoin has only launched a week ago, but the city is already reaping the benefits. The cryptocurrency has already brought in nearly $1 million for the city. The funds generated by MiamiCoin are generated by miners. The protocol is designed with a programmed contribution to the city itself through mining. In theory, the funds are available for the city to spend however it sees fit.
The coin’s creators, on the other hand, hope that it will encourage civic engagement. According to co-creator Patrick Stanley, it works like this: “every 10 minutes, the city of Miami essentially gets richer.”
The developers’ website even suggests electing a “crypto treasury” to benefit the city’s new stream of digital currency. “The city of Miami can choose to use its growing crypto treasury to benefit the city and its constituents — think new public spaces, infrastructure improvements, hosting city events, recruiting startups, and more,” says the statement.
The more people who participate in the MiamiCoin protocol, the more funds are distributed to the city. It is set up so that the city of Miami can receive up to 30% of the funds generated. MiamiCoin is the first of what could be many CityCoins projects. The developer firm hopes to create city-specific cryptocurrencies.
Miami is a crypto champion.
MiamiCoin has announced thanks to the efforts of the city’s crypto-forward Mayor, Francis Suarez. Shortly after the city announced its crypto plans, news of a partnership with OkCoin emerged.
At the moment, the exchange is the only one that accepts MiamiCoin on its platform. However, MiamiCoin may not be the last, as a municipal cryptocurrency in San Francisco is in the works.
Currently, mining is the only way to obtain the city’s cryptocurrency. However, as soon as it is officially listed on OkCoin, users will be able to buy and sell it on the platform. Suarez promoted Miami as a miner-friendly city throughout the year. When China imposed a ban on crypto mining, the mayor of Florida openly welcomed Chinese miners to his city.
Bit Digital, a bitcoin miner, opened its second US location in Miami just last month.
The city will have to navigate state and federal laws that prohibit municipalities from owning cryptocurrency. Florida lawmakers, on the other hand, are working hard to make the state as crypto-friendly as possible. For the time being, the city can only accept the funds after they have been converted to dollars.
Nonetheless, Miami’s reputation as a crypto-forward city made it an ideal test. The developer of MiamiCoin commented on the municipal opportunities. “Historically, people supported a city by paying taxes out of obligation. This is a way to effectively pay tribute and donate to a city while also developing a protocol that can power a new generation of applications that could not exist previously but now do.