Despite their decentralized nature, cryptocurrencies depend on favorable regulations in their home area. Due to the fragmented nature of US cryptocurrency regulations, several locations are jockeying for that top spot. The state of Wyoming continues to court blockchain companies through benevolent legislation. Yet, Miami is clearly in the lead, as far as individual cities. Already boasting a robust tourism and business sector, Miami also hosts one of the largest Bitcoin conferences in the world.
As part of their push, Miami embraced their cryptocurrency known as MiamiCoin. Part of the CityCoin series of projects, MiamiCoin allows users to earn cryptocurrency in a way that directly benefits their choice of city. Revenue generated through MiamiCoin has already topped $10 million USD – a considerable benefit for the city. Success with the Miami version will hopefully encourage other cities to join and reap the same benefits.
What is CityCoin?
CityCoin is a project based on the Stacks protocol and STX token. Stacks introduces smart contract capability to the Bitcoin blockchain, enabling a variety of otherwise unavailable features. CityCoin leverages this to allow users to stake STX tokens and earn tokens – such as MiamiCoin. Users receive 70% of the staking reward, while the city in question receives the other 30%. This encourages users to support their city while simultaneously earning interest.
Only a city’s financial controller can claim the associated tokens for city use, preventing these funds from falling into incorrect hands. While a long shot for general adoption, Miami’s use of CityCoin could drastically boost the system’s legitimacy. Further, platforms like CityCoin could ingratiate the cryptocurrency industry to various municipalities, generating positive press that could halt undeserved overregulation.
Miami Aims to be a Crypto Hub
While Silicon Valley is still the center of the tech-based industry, rising costs and nebulous cryptocurrency regulations have left crypto start-ups seeking greener pastures. Miami offers many of the same advantages as California – warmer weather, desirable real estate, and a younger population. On top of this, Miami offers a shockingly crypto-friendly environment. Beyond MiamiCoin and the Bitcoin conference, Miami’s city government staunchly supports the industry.
Whether the Magic City can cement itself as the center of cryptocurrency in the United States remains to be seen. However, their efforts thus far have paid off – and soon, Miami will exist as a virtual city with NFT-based real estate.