In a first for America, the city of Miami will soon start giving bitcoin yield to its citizens as announced by mayor Francis Suarez earlier this year on a Coindesk TV interview. It’s a bold and somewhat radical move which will have many implications.
Bitcoin as Cash and Replacing Paying Tax????
Suarez envisions that one day Bitcoin will be used as cash and even as a tax payment method. This means that citizens won’t have to pay taxes! He said, “When you think about the possibility of being able to run a government without the citizens having to pay taxes. That’s incredible.” The way this would work would be through the city’s own cryptocurrency MiamiCoin launched in August 2021. Its already amassed over $21 million in just the past three months for Miami. If you were to annualise this revenue, it would equal roughly one-fifth of Miami’s total annual tax revenue of $400 million.
Digital Wallet for The City of Miami
The city of Miami will make payments through a digital wallet that will be launched. It will work with a host of cryptocurrency exchanges to allow citizens to acquire a wallet, register and then get verified. Investors can then earn through two ways. One through mining (obtaining crypto by solving complex equations) and the other through staking (earning rewards for holding certain kinds of cryptocurrency).
Mayor to Take Salary in Bitcoin
Suarez has big plans to create a comprehensive Bitcoin ecosystem in Miami and has even announced that he will take his mayor’s salary in Bitcoin. New York City’s new mayor-elect Eric Adams also has declared that he will take his salary in Bitcoin. It will be interesting to see how many other political leaders follow suit. Both Suarez and Adams are huge fans of crypto and share a similar vision. They both want to create a similar crypto ecosystem for their cities in which their citizens get paid in crypto, and can pay for city fees and taxes in a decentralised economy. Suarez recently hosted the world’s biggest Bitcoin gathering in Miami to attract crypto miners in particular from China to set up shop in Miami.
Chinese Bitcoin Miners Welcome in Miami
Suarez is laying down the welcome mat for Chinese Bitcoin miners to set up shop in Miami in a bid to encourage more nuclear mining investment for his city. The Chinese government has been cracking down heavily on Bitcoin miners making it harder for them to trade. Bitcoin miners of the Xinjiang province received a notice from Chinese government officials earlier in 2021, that their operations be shut down. They face serious repercussions if they don’t abide by orders. Suarez wants Bitcoin mining operations to be moved to Miami. So far, it’s not known exactly if or how many Chinese miners have taken up the call.
The mayor’s love of crypto and setting up a Bitcoin ecosystem in Miami will no doubt have huge implications for the city of Miami but also for other cities and countries. Watch this space to see more news on Miami and crypto.
