MIAMI LAUNCHES A CITY COIN
Miami’s stance towards cryptocurrencies has been on the rise for a lot of time now. The city has taken yet another step to show its support for blockchain technology and cryptocurrencies. It has embraced the change of utility from fiat currency, in this case the US dollar to cryptocurrencies such as Bitcoin, Ethereum and many more. The first city cryptocurrency will debut sometime in August 2021. The city has named it ‘MiamiCoin’ and they will launch this coin in collaboration with the other regulatory bodies. This highlights the support of the politicians of Miami towards cryptocurrencies.
MiamiCoin is the first CityCoin to market, built to support the Magic City while rewarding its holders through the stacks protocol, read the official website of the coin.
There is no doubt that Miami created the coin to complement the functions performed by Bitcoin, the largest cryptocurrency in the world by market capitalization.
It is very evident that the city of Miami supports Bitcoin the most, of all the cryptocurrencies and digital assets that are floating the market currently. Earlier this year, Miami hosted the Bitcoin Miami, one of the major cryptocurrency events in the world. People highly recognize this event as over 10,000 participants attended it including famous personalities.
These personalities included the Winklevoss twins, owners of Gemini, Jack Dorsey, the CEO of twitter, Floyd Mayweather, a former boxer and an entrepreneur. Other famous crypto investors included Michael Saylor, Kevin O’Leary, Tim Draper and Paris Hilton. This conference also serves as proof of Miami’s interest and belief in cryptocurrencies, especially Bitcoin.
What is MiamiCoin?
MiamiCoin is set to be the first CityCoin ever launched. As the name suggests, the city of Miami has developed this CityCoin. It is important to note that this coin will be the first CityCoin to market. This implies that users will be able to legally purchase and sell this coin in the city of Miami. The coin is enabled through the Stacks Protocol which allows the coin to perform smart contracts on the Bitcoin blockchain network.
The government has developed the MiamiCoin primarily to earn staking rewards. They can be mined or bought by anyone who believes in the future of the coin. Moreover, since the coin is developed by the city’s administration, they can bring about policies relating to the coin. It is at their sole discretion to enable further features such as trading, tendering and additional staking by the coin. The government can also use MiamiCoin for the welfare of the general public as well as add to the treasure of the city. The Miami regulations can ratify these policies in accordance with federal laws laid down by the country.
There is a lot of excitement among the citizens residing in Miami. Their wait has almost come to an end since the city announced that they will be launching the coin any time this month.
How does MiamiCoin work?
As mentioned before, the MiamiCoin works with the stacks protocol. This means that anyone can mine MiamiCoin by staking some STX coins through the same protocol.
The algorithm forwards 30% of the staked STX coins to the government’s reserves. The users are free to stake the remaining 70% to yield more STX coins as well as Bitcoins.
The users are eligible to earn up to 100% STX coins per annum for staking. Bitcoin reserves for 10% of the annual rewards.
What are the benefits of MiamiCoin?
To start off, the token holders will witness huge appreciation of value in this asset. This is because the coin is the first CityCoin and is likely to attract popularity and mass ownership.
Secondly, users can generate a passive income stream by staking their coins to earn interest around the year. The beauty of this feature is that the interest will be payable in cryptocurrencies and not fiat currencies. Cryptocurrencies such as STX and Bitcoin have a precedent of appreciating in value overtime while the US dollar has a history of depreciating to inflation.
Moreover, there are various benefits to the government of Miami. The platform will forward 30% of the STX coins to the government’s reserves. These reserves will be used for the welfare of the society. They can utilize these reserves for building infrastructure, construct public communal spaces, build new technological projects similar to this one and refine the current blockchain network of MiamiCoin.
In conclusion, the introduction of MiamiCoin will be a complete boon for investors as well as the city of Miami.