Miami voted to accept cryptocurrency funds and in this state, it is called the MiamiCoin. It is a new cryptocurrency that was launched last month by CityCoins Inc., a crypto developer.
It was announced early this week that Miami voted in favor of accepting crypto and be able to access more than $4.5 million worth of MiamiCoin. The funds are said to be still growing as of this time.
MiamiCoin is similar to Bitcoin as it was also created through a technical process of “mining” the coin using computers to solve complicated equations. When a MiamiCoin is successfully mined, there will be a 30% “reward” and this percentage is deposited as a contribution into a virtual wallet designated for the state of Miami. The access to this wallet was what the city approved on Monday.
While the city commissioners voted to accept MiamiCoin funds they will not be immediately used and this means the local government will not be spending them, at least for now. Moreover, CityCoins Inc., created MiamiCoin but it does not own them, rather its ownership is decentralized like most existing cryptocurrencies today.
As per Government Technology, the value of MiamiCoins is decided by the value of Stacks, another cryptocurrency. Currently, one Stacks is worth $1.50 and Miami has more than $4.5 million funds since over three million Stacks were committed to the city wallet and the amount is still going up.
Then again, it was said that based on the agreement, Miami will only accept the funds as U.S. dollars, to access them and avoid being in direct custody of a cryptocurrency. Everyone has access to MiamiCoins by mining or buying them from an exchange like Okcoin.com which sells them.
“The fact that CityCoins has chosen to do a MiamiCoin is an indication of how Miami is viewed in the crypto community,” Miami Mayor Francis Suarez Suarez said. “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.”
He added that the city officials will further discuss how to use the funds as they are aware that more money will be generated in the city’s crypto. Fox Business noted that around $2,500 worth of cryptocurrency is being deposited into Miami’s digital wallet every 10 minutes, with an average of 35 miners vying to produce MiamiCoin.
“It’s a very very new technology, we want to be safe, we’ve done significant due diligence, but we want to be abundantly careful,” the mayor added. At any rate, the commissioners initially proposed to use the funds on programs to help underprivileged communities, provide incentives for tech business owners, and help alleviate climate change.