Modern currency is turning out to not be as marvelous as thought and shows the need to keep a paper currency instead of buying into a fully controlled digital currency.
The stock market continues to sink even further into a sinkhole thanks to the incompetence of President Joe Biden and the city of Miami is feeling the sting of putting its faith in its own cryptocurrency – MiamiCoin.
Miami has cashed out all of its own crypto, which added about $5.25 million to the city’s funds and it was highly praised by the Mayor Francis Suarez as a “historic moment” at the time and touted to be the replacement for municipal taxes as the city’s primary income.
According to a report from Quartz, the creators of MiamiCoin – CityCoins – called the new currency an experiment meant to empower citizens with a “community-driven revenue stream” that would apparently lead to an array of new city services that will be digitized.
The report from Quartz continues:
Miami is not the only city with big cryptocurrency dreams. CityCoins announced a similar cryptocurrency for New York in November 2021, and plans to release a coin for Austin, Texas, soon. Other cities have launched their own crypto ventures: Fort Worth, Texas, for example, will soon be running bitcoin mining rigs in city hall.
But only Miami’s mayor has thrown his full endorsement behind a CityCoin-branded cryptocurrency so far. After promoting MiamiCoin to residents and investors since its launch in August, the city of Miami received millions of dollars through its agreement with CityCoins.
The outlook is not good, however, after MiamiCoin lost 95 percent of its value, costing investors huge amounts and throwing a wet blanket on the hopes of Miami’s city leaders.
Quartz noted that the sudden drop in value may be raising red flags for regulators who are investigating cryptocurrency transactions.
“MiamiCoin is the first in what CityCoins, a Delaware-based company with a mailing address in a Los Angeles strip mall, has promised will be a series of US city-branded cryptocurrencies,” the report noted.
“New York City mayor Eric Adams tweeted his approval of NYCCoin on Nov. 8, shortly after his election, welcoming CityCoins to ‘the global home of Web3’ (Web3 is a crypto-optimist idea of a decentralized internet built on blockchains and cryptocurrencies). But Adams hasn’t spoken of NYCCoin since taking office on Jan. 1 of this year, and the coin has fallen 68% since then. Meanwhile, Philadelphia’s government has explored the CityCoins idea, but announced in April it would not proceed,” Quartz added.
Despite the mess that Miami is now in because of MiamiCoin, they are still determined to move ahead with cryptocurrency, and some have speculated the only reason that Mayor Suarez pushes the digital currency, is to elevate his appeal to Silicon Valley tech entrepreneurs that he hopes to draw to the city.