The official cryptocurrency of the city of Miami, MiamiCoin, has already generated the city almost $1million.
MiamiCoin just launched last week, however the city is already reaping the benefits. The cryptocurrency has already generated close to $1 million for the city. The funds generated through MiamiCoin are via miners. Through mining, the protocol is designed with a programmed contribution to the city itself. In theory, the funds are available to the city to use as it pleases.
However, the creators of the coin hope it incentivizes civic engagement. Co-creator Patrick Stanley said how it works is that, “every 10 minutes the city of Miami essentially gets richer.”
The website of the developers even suggests the election of a “crypto treasury” to benefit the city’s new stream of digital currency. “The city of Miami can elect to use its growing crypto treasury to benefit the city and its constituents — think new public spaces, improvements to infrastructure, hosting city events, recruiting startups, and more,”
The more activity on the MiamiCoin protocol, the more funds distributed to the city. It is programmed so that the city of Miami can receive up to 30% of generated funds. MiamiCoin is the first of what could be many projects by CityCoins. The developer firm hopes to establish individual cryptocurrencies for cities.
Miami champions crypto
The announcement of the launch of MiamiCoin came at the efforts of its crypto-forward Mayor, Francis Suarez. Shortly after the city revealed its crypto intentions, more news surfaced of a partnership with OkCoin.
The exchange is the only one at the moment, offering MiamiCoin on its platform. However, MiamiCoin may not be the last, as a San Francisco municipal cryptocurrency is in the works.
Currently, the only way to obtain the city’s crypto is by mining. Though as soon as it is officially listed with OkCoin users can buy and sell it via the platform. Throughout the year, Suarez championed Miami as a miner friendly city. When China started its ban on crypto mining, the Floridian mayor openly welcomed Chinese miners to his city.
Just last month, bitcoin miner Bit Digital opened its second U.S. location in Miami.
The city will need to navigate state and federal provisions which prohibit cities from owning crypto. However, Florida lawmakers are on the case to make the state as crypto-friendly as possible. For now the city can only accept the funds once they’re transferred to dollars.
Nonetheless, Miami’s crypto-forward reputation made it the perfect test. MiamiCoin developer commented on the municipal opportunities. “Traditionally people used to support a city by paying taxes out of obligation. This is a way to effectively pay tribute and donate to a city out of opportunity, and building up a protocol that can power a new generation of applications that couldn’t exist before and now do.