Miami has voted to accept $4.5M in MiamiCoin Crypto Funds. MiamiCoin is a cryptocurrency developed by CityCoins Inc., which contributes to the city’s municipal projects. It is decentralized and mined like other cryptocurrencies.
On September 13, the City Commissioners of Miami voted to accept the MiamiCoin-linked funds, as reported by Miami Herald (MH).
The cryptocurrency was launched in August, and in a month’s time, it has received official recognition.
CityCoins, the developer of the cryptocurrency, “hopes to generate interest in a city’s municipal projects” through its projects.
What is MiamiCoin ?
MiamiCoin is a decentralized cryptocurrency, and just like any other decentralized cryptocurrency, it is minted or mined by solving complex equations.
When a MiamiCoin is mined, 30% of the “reward” is deposited as a contribution into a virtual wallet reserved for the City of Miami. “It is the access to the wallet that the Commissioners approved.”
The value of the MiamiCoins in the City’s wallet is determined by the value of another cryptocurrency, called Stacks. One Stacks is worth about $1.50.
More than 3 million Stacks have been committed to the City of Miami’s designated wallet, worth around $4.5 million.
In an interview mentioned in the MH article, Miami Mayor Francis Suarez “hailed the decision to accept the funds.”
“The fact that CityCoins has chosen to do a MiamiCoin is an indication of how Miami is viewed in the crypto community,” Suarez said in the interview. “The fact that it gives 30% of mining proceeds to the City could create significant benefits, and has already created approximately $4 million in 30 days.”
A statement from CityCoins on its website reads, “Protocol contributions will continue to replenish and grow as the MiamiCoin protocol gets more usage. Contributions are initially denominated in STX tokens but will be auto-converted to USD when the City accesses its wallet—ensuring funds are legally compliant and available for immediate, real-world deployment.”
So, the City will only accept the funds as U.S. dollars to remain compliant with the financial and monetary laws of the country by avoiding direct custody of a cryptocurrency.
Suarez also emphasized that the City is not endorsing MiamiCoin, and it will not be able to use Miami’s logo.
Nevertheless, Monday’s vote is a manifestation of the city’s vision to become a crypto and tech hub.
How to access MiamiCoins?
Anyone can access MiamiCoins by mining them or buying them on an exchange. Currently, only Okcoin.com has listed the cryptocurrency.
Once the initial mining period has concluded, MiamiCoin will be exclusively available on OkCoin, reported BeInCrypto.
Speaking with BeInCrypto, OkCoin COO Jason Lau said:
“Miami’s decision to hold a cryptocurrency wallet in its treasury is setting a precedent for forward-looking cities across the US and the world. Mayor Suarez and his team, along with the CityCoins community, are pioneering a new era of civic engagement and proving how municipal governments can embrace innovation to benefit their constituents. The millions of dollars that the MiamiCoin protocol has generated for Miami in the last six weeks is only the beginning. More cities are going to follow suit with adopting cryptocurrency to engage citizens and help fund urban development.”
Benefits of MiamiCoin
“One of the main benefits of MiamiCoin are the decentralized applications that can be built on top of this programmable token, by and for the community,” CityCoins said. “There are currently over a hundred developers already building applications using MiamiCoin’s open-source protocol for the ongoing MiamiCoin Makers Month hackathon”, CityCoins said on its website.
The more MiamiCoin will be used the higher its value will be as the demand will create upward pressure. So, investment in MiamiCoin is an investment in Miami, indirectly.
Also, as mentioned above the 30% of the rewards are earmarked for the city’s wallet can be used by the commission as per its discretion.
“With Miami poised to take full advantage of their protocol contributions, City officials across the globe have on opportunity to activate their own CityCoins and unlock new resources to benefit their city,” CityCoins added.
In earlier times, every city or district used to have its own special culinary dish. Today, we are at a junction where every city can have its own digital currency. People can use it as a collectible or memorabilia whereas the city municipality can use it to raise funds for its own public projects.
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