Miami mayor Francis Suarez recently announced the city would soon start paying its citizens in Bitcoin. Suarez claimed in an interview with CoinDesk, “We’re going to be the first city in America to give a bitcoin yield as a dividend directly to its residents.”
The city has its own cryptocurrency, dubbed MiamiCoin, which has brought in $21 million in income in the last three months.
MiamiCoin produces a return by “staking” its holdings on other cryptocurrency networks. This implies that when the city’s digital assets are utilized to authenticate transactions in different networks, they earn money.
Suarez stated that a percentage of the profits made by staking the city’s cryptocurrency will be distributed to residents in Bitcoin.
Bitcoin is the most widely used cryptocurrency.
He explained, “We’re going to create digital wallets for our residents, and we’re going to give them Bitcoin directly from the yield of MiamiCoin.” He continued, “I do see very quickly a world where the satoshi (the anonymous inventor of Bitcoin) system is what is used to make payments,” Suarez said. “We want you to hold bitcoin, but we also want to increase the utility of bitcoin.”
Suarez intends to distribute the wallets to Miami residents in collaboration with major cryptocurrency exchanges. He also plans to develop a verification and registration system for applicants. Additionally, the mayor told CoinDesk that he believes the project’s profits would soon exceed tax revenue from Miami residents and that this model will become the primary payment method.
MiamiCoin’s parent company, CityCoins, recently announced that it would be expanding to New York City, where Mayor-elect Eric Adams said that he would take a portion of his salary in Bitcoin and called for cryptocurrency education in public schools.
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