Francis Suarez, the mayor of the American city of Miami, has celebrated the success of the MiamiCoin. This was a recent initiative to fund municipal projects and was built on top of the Bitcoin (BTC) blockchain.
The MiamiCoin was launched last August by CityCoins and is built on Stacks. Stacks is an open-source network of decentralized applications and smart contracts that use Bitcoin’s blockchain as a base layer.
It was programmed that 30% of all minted coins would be routed to a digital wallet destined for the city. These funds are then used for spending on projects to mitigate the risks of climate change, among other things, financing initiatives for the local communities and investments in crypto education for tech entrepreneurs.
Over $2,000 every 10 minutes
Research by Fox Business has shown that approximately $2,500 worth of Stacks (STX) is transferred to the city’s wallet every 10 minutes. At the time, the price of STX was around $1.50. This value has since fallen to $1.31 per STX at the time of writing this article.
The mayor, Francis Suarez, has since confirmed the margin figure, saying that mining revenues have brought the city more than $2,000 every 10 minutes. He said the following about this: “The City of Miami has generated more than $5 million with MiamiCoin in the past 30 days.”
Reserve for future expenses
Remarkably, in the recent vote on the funds that have been collected since August, no vote has been taken to spend them. Instead, she accepted the US dollar equivalent of the proceeds and keeps it in reserve for future municipal spending.
By converting the funds directly into dollars, the US city ensures that the cryptocurrencies are not directly held in custody. The mayor of Miami said of the initiative:
“It’s interesting because it’s not an involuntary tax, it’s not philanthropy, it’s something completely different and could revolutionize the way governments are funded in the future. It is theoretically possible that the city can generate enough taxes through MiamiCoin so that our residents don’t have to pay a cent more in taxes.”