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Miami citizens to earn Bitcoin despite the city not holding crypto

The Miami City Commission has approved a bill that will allow residents to earn Bitcoin by simply walking around the city and providing information on crime. The plan was proposed as an incentive for people who don’t have access to banks or credit cards, such as those below poverty line. A similar program in Detroit has already seen success with over $1 million earned so far.

Miami citizens are to earn Bitcoin despite the city not holding crypto. The Miami-Dade County is one of the few cities in the United States that has decided to allow residents to get paid in Bitcoin for work they do. Read more in detail here: who owns the most bitcoin.

 

Miami is gradually establishing itself as the United States’ crypto capital. The Magic City was the first state in the United States to introduce MiamiCoin (MIA), its own cryptocurrency for civic involvement, in August of this year. Mayor Francis Suarez said a few months later that every Miami citizen having a digital wallet would be eligible for a Bitcoin dividend. 

While such a plan would make Miami the first city in America to provide people a Bitcoin (BTC) payout, Mayor Suarez informed Cointelegraph that the city does not own or own MiamiCoin, or any cryptocurrency for that matter.

CityCoins, according to Suarez, is an autonomous community working on its own behalf. According to Suarez, “CityCoins introduced MiamiCoin as a tool for residents to connect more directly with their cities and governments.” He went on to say that part of CityCoins’ objective is to help the cities they support by donating 30% of all mining earnings to the city that bears their name.

CityCoins operates as a custodian of Miami’s incentives until they are turned into cash and publicly presented to the city. Suarez elaborated:

“The reason Miami citizens will be able to earn dividends in Bitcoin is because CityCoins may reinvest the incentives from MiamiCoin and earn a yield in Bitcoin before the City receives the cash present from CityCoins.” It is my goal to ensure that every penny of that profit goes to Miami residents. A community that invests in its city is entitled to have that money returned to the community.”

Patrick Stanley, CityCoins’ community director, also told Cointelegraph that since Aug. 4, when mining for MiamiCoin started, the city has made almost $22 million dollars. More crucially, Stanley said that this sum is expressed in Stacks’ STX token. Since CityCoins is based on Stacks, an open-source network of decentralized apps and smart contracts created alongside the Bitcoin blockchain, this is the case.

STX is generating a 10% yearly percentage dividend in Bitcoin, according to Stanley. As a result, he estimates that if this technique continues, every Miami resident may get a few hundred or even thousands of dollars in BTC every year in the next five to ten years. Stanley went on to say:

“The City of Miami will experiment with using BTC produced from its treasury to provide USD to its inhabitants. This is significant because Mayor Suarez effectively mobilized all residents to embrace the MiamiCoin protocol, which will enable anyone to mint NFTs, develop apps, and accept crypto payments.”

Given MiamiCoin’s potential, Suarez said that he hopes to provide every Miami citizen with the option to participate in the crypto and blockchain revolution. Stanley went on to say that MiamiCoin has been used to create over $150,000 worth of art and that the protocol can also be used to power smart contracts.

The adoption period for CityCoins is yet unknown.

While MiamiCoin looks to be doing well, Suarez said that he is well aware of the legal challenges and complexity that community acceptance might bring. “There’s no way of knowing how fast we’ll be able to make this happen,” he added.

Despite this, it’s certain that more forward-thinking American towns will follow Miami’s example in introducing a CityCoin. New York City recently announced “NewYorkCityCoin” (NYCCoin), which came after Mayor-elect Eric Adams declared his desire to make New York a crypto-friendly city. After Adams proposed the concept, the community voted on a New York CityCoin, according to Stanley. “New York was a step ahead of San Francisco because Mayor-elect Eric Adams was vocal about the effort,” Stanley noted.

Related: What is Eric Adams’s potential? The constraints of transforming New York City into a cryptocurrency hotspot

However, in the instance of CityCoins’ success record, deeds may speak louder than words. For example, according to a recent Cointelegraph report, New Yorkers are unable to lawfully mine NYCCoin since they do not have a compliant mechanism to purchase STX tokens. This is because the coin isn’t accessible on any exchange that has a BitLicense, which is necessary for residents of New York City to purchase cryptocurrency.

Interestingly enough, since mining started on November 11, nearly $7 million has been made by mining NYCCoin. However, Stanley pointed out that mining CityCoin does not need being a resident of the city it represents:

“MiamiCoin is a protocol with an open membership.” You simply need a web wallet and to pick the CityCoin you want to mine before sending the money to Stack.”

Given Austin Mayor Steve Adler’s interest in cryptocurrencies, Stanley noted that an Austin CityCoin may be next.

CityCoin adoption is aided through crypto education.

Aside from the challenges, it’s worth noting that crypto education might be a motivator for communities interested in adopting CityCoins. Adams, for example, has said that crypto education should be taught in New York City schools.

Suarez, like Adams, believes that a more comprehensive educational program is needed to educate pupils for the future generation of technology and finance:

“We’re already looking towards expanding Miami’s charter school network to provide this more industry-specific instruction.” The City of Miami has set aside $20 million in its designated pocketbook, and we anticipate receiving $4 million to $5 million this week. We have a number of ideas for how to spend the money, and we want to listen to what the community has to say about how to spend it.”

While crypto education is on the horizon for both New York City and Miami, Suarez stated that spending any MiamiCoin funding has been put on hold for the next six months in order to better analyze community needs. “We’re already talking to a lot of experts in the Bitcoin community about wallet alternatives and technologies like Lightning,” he added. “We’re going to take our time to make sure we get the technological and teaching components right.”

Related Tags

  • invest in bitcoin now
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  • when to buy bitcoin 2021

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