Miami will pay residents a ‘bitcoin yield’ from its city cryptocurrency, Mayor Suarez says | Currency News | Financial and Business News
- Miami will pay its residents “bitcoin yield” from its city coin, Mayor Suarez told CoinDesk TV.
- “We’re going to be the first city in America to give a bitcoin yield as a dividend directly to its residents,” Suarez said.
- MiamiCoin launched in August through CityCoins. When bought or mined, it allocates 30% of its reward to the city.
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Miami will share with its residents some of the gains from the city’s new cryptocurrency and will distribute payments through digital wallets, Mayor Francis Suarez told CoinDesk TV on Thursday.
MiamiCoin launched in August through CityCoins, an open-source protocol that allocates 30% of its reward to cites when their coins are bought or mined.
The cryptocurrency has generated over $21 million in the past three months for the city. If annualized, it would amount to roughly $80 million, which is already one-fifth of the city’s total annual tax revenue of $400 million, the mayor said.
“We’re going to be the first city in America to give a bitcoin yield as a dividend directly to its residents,” Suarez said.
While he called the payment a “bitcoin yield,” the dividend will come from staking MiamiCoin, a separate digital currency. Suarez in October has already expressed hope that MiamiCoin could one day support the city without its residents having to pay taxes.
But before residents can get their dividends, the city must define who will get them. Possible parameters include taxpayers, voters, or residents, Suarez said.
There are also technological hurdles in making this happen. He said he would have to tap multiple companies and crypto exchanges to set up wallets for the recipients, which would require large-scale registrations and verifications.
Meanwhile, Suarez continues to be a strong backer of bitcoin and doubled down on his stance after the latest US inflation data showed prices are surging at the fastest rate in 30 years.
Bitcoin has long been touted as a hedge against rising prices due to its fixed supply of 21 million coins. The narrative held true on Wednesday, bitcoin rose to an all-time high after the inflation data came out.
“When you see inflation at over 6%, which I think is an under-reporting of inflation, and you see the price of bitcoin surging, it’s clear that people are taking their money out of dollars and putting it in a currency, in a store of value, that they feel confident in,” he told CoinDesk TV.
Suarez has been committed to building Miami up as a hub for digital innovation. In November, Suarez took to Twitter to say he’d take his next paycheck in bitcoin, only to be outdone by New York City Mayor-Elect Eric Adams who said he will take his next three in the same asset.