In brief
Miami's own cryptocurrency, MiamiCoin, will launch tomorrow.
The cryptocurrency will essentially allow people to invest in Miami by buying the coin.
Money raised will be used to fund projects and events in the city.
Miami will launch its very own cryptocurrency tomorrow, MiamiCoin, which will be used to fund infrastructure projects or events in the city.
The idea is that people will support Miami by buying or mining MiamiCoin, and funds will be diverted to the city's treasury.
MiamiCoin will be the first CityCoin released. CityCoins is a project that allows people to invest in a city by buying tokens. It works with local governments so those who invest are rewarded in Bitcoin or Stacks, the native cryptocurrency of the eponymous protocol used to build things on the Bitcoin blockchain.
“MiamiCoin provides an ongoing crypto revenue stream for the city, while also generating STX and BTC yield for $MIA holders,” the CityCoins website reads.
“MiamiCoin can be mined or bought by individuals who want to support the Magic City and earn crypto yield from the Stacks protocol. MiamiCoin additionally benefits holders by allowing them to Stack and earn yield through the Stacks protocol.”
Anyone can mine MiamiCoin (or other CityCoins, when released.) If the project takes off and becomes popular by more people holding it, investors will be able to passively earn Bitcoin simply by owning the MiamiCoin. This is because MiamiCoin is built on Stacks, a crypto project which allows users to lock up their tokens and earn rewards to keep the system running.
And as more coins are mined, a portion is deposited into a wallet for the local government to use on whatever it wants—for example, infrastructure.
Miami's crypto-friendly mayor, Francis Suarez, has said he wants to make Miami the go-to hub for tech and crypto startups and has even invited Chinese Bitcoin miners to the Florida city. He called Miami the “Bitcoin capital of the world” after the city in June hosted Bitcoin 2021, a two-day Bitcoin conference.
And Suarez last week told Fox Business that “the City of Miami could end up earning millions of dollars as a result of the popularity of MiamiCoin.”
“It's like a Bitcoin and it's on the blockchain protocol, so whenever that coin is mined, a percentage of the coin by virtue of the programing goes to the City of Miami,” he said.
But the MiamiCoin project is experimental and it is not known whether it will in fact generate revenue for the city.
CityCoins said that MiamiCoin (or MIA) will be available on “certain trusted exchanges” from tomorrow. The exact exchanges will be announced soon, according to the CityCoins website.