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Miami and New York City Progress in Raising Funds through CityCoins

By:
Bob Mason
Updated: Jan 20, 2022, 15:12 GMT+00:00

Miami City and New York City go CityCoins to build crypto treasure chests to invest back into the cities.

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Earlier this year, the Mayors of Miami and New York City were in the crypto news. Miami City Mayor Suarez confirmed that he will receive a Bitcoin (BTC) salary.

In the first week of the year, New York City Mayor Adams also confirmed that he will take his first 3 paychecks in BTC. Both mayors had talked of crypto salaries during their respective election campaigns.

Miami City to Pay BTC to Local Residents

Late last year, Miami City Mayor Suarez had already been in the crypto news, however. Bitcoin advocate Suarez announced an initiative to pay BTC to locals who create a digital wallet.

In June 2021, the City of Miami had launched its very own MiamiCoin (MIA), which became the first CityCoins to market.

CityCoins provides citizens a medium to generate crypto-based revenue. Powered by Stacks (STX), CityCoins enables smart contracts on the Bitcoin network.

While most crypto protocols are a single token system, the CityCoins protocol allows for a multiple token systems. This feature allows users to generate tokens for each individual city.

CityCoin miners receive CityCoins token rewards by depositing STX into smart contracts. 70% of all STX tokens deposited into the smart contract go to the stackers.

The remaining 30% goes to City Wallets. City Wallets are considered a crypto equivalent of a city’s treasury. Mayors can exchange the accrued tokens for fiat to invest in the city. Alternatively, mayors can mine with the accrued STX tokens to earn Bitcoin.

MiamiCoin Market Cap Hits $25m, with NewYorkCityCoin Hitting $30m

At the time of writing, MiamiCoin was ranked #4,002 on CoinMarketCap, with a market cap of $24.15m. For the City of Miami and its residents, as the value of MiamiCoin rises, the number of miners increases. The result is an increase in STX blocks, which leads to a larger crypto treasury chest for the city. Coin holders are then also rewarded Bitcoin.

In a nutshell, it is up to the people with a vested interest in the City of Miami to mine. This then leads to a larger treasure chest to invest in the city.

Miami is not alone, however, with NewYork Coin (NYC Coin) also in circulation.

With regulatory activity on the rise at the turn of the year, CityCoins could have a tough road ahead.

Environmental concerns around Bitcoin could be a stumbling block. A number of governments have raised concerns over the impact of Bitcoin mining on the environment. China banned Bitcoin mining last summer as it looks to be carbon neutral by 2060.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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