Miami’s pro-crypto Mayor, Francis Suarez, is still pushing for the city to embrace Bitcoin (BTC/USD) on a larger scale. Suarez stated in an interview on October 12 that paying employees in BTC is a top priority for the city.
According to him, using BTC to pay city employees’ salaries would help Miami establish itself as a crypto capital of the US or the world.
In the interview, Mayor Suarez stated that the city intends to submit a request to allow it to develop a payment mechanism that processes city workers’ salaries in cryptocurrency.
The request will also ask for permission to allow residents to pay fees and possibly even taxes using the flagship cryptocurrency. According to Suarez, the city intends to issue this request within the next month.
Suarez reminded the city commissioners that he had previously proposed that Miami invest government funds in BTC. However, the proposal was stymied because Florida statutes prohibit local governments from investing in highly volatile assets.
An ingenious method for the city to HODL cryptocurrency
Suarez explained why he is pushing for Miami to accept BTC by saying that if the city purchased BTC and held it after he tabled the proposal, its BTC holdings would have increased by 30-40%. Such a feat, he claims, would have made him look like a genius.
His estimates, however, were exaggerated, given that BTC was trading around $44,000.00 (£32,301.50) at the time. At the time of writing, the coin was trading at $55,107.17 (£40,455.55), representing a 20% gain.
While this may appear to be a small sum, a $100 million (£73.42 million) investment would have increased the city’s crypto holdings by $20 million (£14.68 million).
While state laws prohibit Miami from investing in cryptocurrencies, the city created a digital asset known as MiamiCoin (MIA) after collaborating with CityCoins, a non-profit and opensource protocol that allows investors to support their city by expanding its crypto treasury while earning profits.
MIA, which debuted in August, donates 30% of its reward to the city whenever it is purchased or mined.
Suarez, who is optimistic about the MIA, said he sees the coin supporting Miami without its residents having to pay taxes. The coin has already generated over $7.1 million (£5.21 million) for the city since its launch, and Suarez believes it could generate up to $60 million (£44.06 million) over the next year.