Wednesday, January 19, 2022

Miami unveils its own digital coin

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On June 2, 2021, Miami Mayor Francis Suarez tweeted that “MiamiCoin” would be the first “CityCoin” ever to be launched, representing Miami’s very personal cryptocurrency. Quick ahead about two months later and the anticipation surrounding the discharge of MiamiCoin has been on the rise. 

Initially, it could seem as if the Magic Metropolis’s digital foreign money will operate similar to different cryptocurrencies that may be purchased, offered and traded to revenue each traders and the town of Miami. But, “MiamiCoin” is sort of distinctive from different digital currencies.

A developer platform for cities

Patrick Stanley, founder and CEO of CityCoins — the undertaking behind MiamiCoin — advised Cointelegraph that MiamiCoin (MIA) can truly be thought of as a developer platform for cities. “MiamiCoin, being the first-ever CityCoin, is completely programmable. Subsequently, purposes can simply be constructed on high of it,” mentioned Stanley.

Particularly talking, CityCoins is a undertaking constructed on Stacks, which is an open-source community of decentralized purposes (DApps) and sensible contracts constructed adjoining to the Bitcoin blockchain. Because of this MiamiCoin, which was formally activated on August 3, might be thought of as a DApp powered by the Stacks community — a wise contract platform constructed on the Bitcoin community. As such, Stanley defined that MiamiCoin can’t be pre-mined or purchased in the meanwhile:

“The group launched MiamiCoin, so everybody has to mine $MIA pretty and equally. This represents open membership mining, which is identical idea as when Satoshi launched Bitcoin. Mining formally started on August 4.”

Concerning the tokenomics behind MiamiCoin, Stanley talked about that through the first two weeks of mining MIA, the bottom foreign money getting used to mine CityCoin — which is Stacks’ STX token — will go straight right into a reserved pockets claimed by the town of Miami. After two weeks, 30% of all these funds will stay within the reserved pockets, whereas 70% will probably be allotted to the miners.

Stanley additional shared that as a result of CityCoins is powered by Stacks, customers will be capable of swap between MIA and Bitcoin (BTC) when performing a Bitcoin transaction. “We think about Bitcoin as one thing that may energy many different purposes, although it’s presently underutilized,” commented Stanley. To his level, most DApps are presently constructed on Ethereum, which noticed quite a few elevated exercise final 12 months.

“Group cash” enabled by crypto

An necessary level to notice right here is that 30% of the mined MIA will probably be allotted to the town of Miami. In line with an article published by The Miami Herald final month, metropolis officers talked about that MiamiCoin might be used to construct roads, parks and different public infrastructures.

Stanley famous that the town of Miami leveraging MIA for civic engagement is extraordinarily necessary, given the group side behind CityCoins. In line with Stanley, CityCoins are in a small half a coin for geographies, which means those that worth sure areas can present their assist by holding digital currencies created for various cities. Stanley additional remarked that over time, CityCoins will overflow to different communities throughout numerous areas.

Whereas futuristic, this idea was a part of the explanation why the cryptocurrency alternate Okcoin pledged to record MIA on its platform. Haider Rafique, chief advertising and marketing officer at Okcoin, advised Cointelegraph that there have been a number of traditionally compelling tasks and groups which have taken a very long time to reach in the USA. Rafique believes that CityCoins may doubtlessly put collectively an ecosystem for various purposes:

“By opening these markets, we convey traders in who should purchase these belongings after which additional discover these ecosystems. For instance, Stacks has numerous decentralized finance purposes to work together with. We see CityCoins as having that very same sort of utility.”

Furthermore, Rafique considers MiamiCoin to exhibit a brand new manner for folks to leverage cryptocurrency to take part in civic engagement: “CityCoins isn’t just an incentive for retail traders, but additionally for governing our bodies. Cryptocurrency shouldn’t simply be about hypothesis, but additionally about real-world utilization.” Rafique added that MIA will grow to be tradable on Okcoin afterward, as soon as liquidity is created from mining.

Will the idea be broadly adopted?

Though it’s notable that Miami is the primary metropolis to launch a CityCoins token, issues round adoption and rules stay. Tim Shields, a accomplice at Kelley Kronenberg’s Fort Lauderdale regulation workplace, advised Cointelegraph that he doesn’t assume MiamiCoin will end in widespread adoption: “The technological scheme of how MiamiCoin works is pretty advanced and it’ll transcend the scope of most individuals who already maintain cryptocurrency.”

Whereas this can be, Shields does consider that MIA will assist additional develop Miami’s rising tech ecosystem. In line with Shields, MiamiCoin is yet one more effort that highlights Miami’s openness and pleasant stance towards cryptocurrency. Shields additional remarked that Mayor Suarez has clearly been engaged on his objective of creating Miami the Bitcoin capital of the world, and if nothing else, MiamiCoin reveals {that a} metropolis mayor can appeal to innovation within the blockchain area.

Associated: Miami stakes the claim to become the world’s Bitcoin and crypto capital

Concerning rules, Shields defined that this may seemingly be difficult, noting that he’s unsure how the town of Miami will maintain MIA. “This can be held as property after which transformed to money,” he remarked.

Ben Bartlett, Berkeley Metropolis Council member and crypto lawyer, advised Cointelegraph that the dangers with MiamiCoin seem like in assessing liquidity for the tokens. Bartlett additionally talked about friction when leveraging MiamiCoin: “Peculiar folks don’t have the bandwidth to cope with the complexities of wallets and seeing out the suitable alternate. There could also be some regulatory points that must be rigorously thought of.”

Bartlett defined that is particularly the case in mild of latest proposals laid out by the brand new digital asset infrastructure invoice that goals to expand the definition of brokers to incorporate miners and different linchpins of the crypto ecosystem.

Issues apart, Bartlett stays hopeful that the town of Miami can resolve these points by adopting an agile strategy, guaranteeing in style participation whereas avoiding regulatory pitfalls. “I’m very excited and grateful for the mayor of Miami’s daring management. MiamiCoin represents the following degree of governance and shared prosperity,” mentioned Bartlett.