Miami has been supportive of the fintech industry and cryptocurrencies and blockchain in particular. Miami Mayor Francis Suarez has just launched the city's own cryptocurrency called MiamiCoin ($MIA). How does Miami compare to other crypto cities?
CityCoins is a new concept popular in the U.S. that allows citizens to support their own cities or their favourite cities by investing in the city's tokens to grow their cryptocurrency wealth and earn Bitcoin (BTC) and Stacks (STX) in return. MiamiCoin has become the first of its kind.
"This coin will help the city focus on 'differentiating our economy,'"
said Suarez, the mayor of the city of Miami, told Fox News, a New York-based cable news channel.
Akon, a Senegalese-American pop star, is building a futuristic city in Senegal equipped with advanced technologies and using its own coin called Akoin (AKN). Akon has so far raised $4 billion of the total $6 billion needed to build the city, while Akoin is now trading on Bittrex and has a market cap of $74,691,236 to date.
On a meta-level, El Salvador has made bitcoin not just a single city's cryptocurrency, but a national currency used to make payments and settle debts. Bitcoin is set to become El Salvador's second national currency on September 1, although critics including the International Monetary Fund (IMF) and the World Bank have called it a "disaster" for the El Salvadoran economy. The president of El Salvador Nayib Bukele has since become a hero in the cryptocurrency community. Bank of America has also changed its mind about Bitcoin becoming a national currency, highlighting numerous benefits that El Salvador could reap.
Miami City is the first city to claim a crypto wallet for its city as part of Freehold and Stacks' CityCoins initiative, which has created wallets for every American city. Following Miami's lead, San Francisco will also launch its own cryptocurrency.
According to the creators of MiamiCoin the city's cryptocurrencies will run on stacks, a protocol that enables smart contracts on the Bitcoin network. Mining these tokens is accessible to the general public. The network automatically deducts 30% of miners to reward the city of their choice. Miami's mayor says the 30% "donation" could build the city's crypto coffers, help the homeless, and other development projects.
If successful, it could raise funds for local governments and help finance their budgets. The mayor of Miami Francis Suarez is a big proponent of cryptocurrencies and has repeatedly said he wants to make the city Southern Florida the bitcoin capital of the world to attract tourists and increase revenue. Francis Suarez might get along well with Senator Cynthia Lumis, whose dream is to make Wyoming a crypto state.
However, fundraising models like Francis Suarez, which are based on donations, would only work with free money. Crypto donations are becoming a popular phenomenon in humanitarian work today. The world's first charity fund called Love Earth Coin was set up to help flood victims in China and Germany. The MiamiCoin from Francis Suarez is not yet traded on exchanges.
Miami is one of the most crypto-friendly cities in the U.S. and aspires to be the bitcoin capital of the world. Its leadership supports crypto investment and blockchain technology. The launch of MiamiCoin is another step on the road to becoming a crypto capital.