Miami Mayor Francis Suarez hopes to “run the city without taxes” through the profit generated from the city’s native crypto token MiamiCoin (CRYPTO: MIA).
What Happened: In an announcement on February 3, Mayor Suarez said that the city of Miami had received a $5.25 million disbursement from CityCoins.
I’m so excited to announce that the @CityofMiami has received its first-ever disbursement from @mineCityCoins totaling $5.25M.
This is a historic moment for our city to collaborate with an innovative project that creates resources for our city through innovation not taxation.
— Mayor Francis Suarez (@FrancisSuarez) February 2, 2022
CityCoins created MiamiCoin – a cryptocurrency token that runs on the Stacks (CRYPTO: STX) blockchain – in August 2021.
Since it has been in operation, MiamiCoin has earned 30% of the revenue derived from mining the token, which amounted to $15 million at the time of writing.
“It’s generated about $15 million for the city in about 4-5 months. We just got the first payment of $5 million dollars,” Mayor Suarez told Fox News.
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Miami plans to deploy some of the cryptocurrency earned in lending protocols as a way to earn more interest on its profits. These profits will then be converted into Bitcoin (CRYPTO: BTC) and paid out to citizens as dividends, explained Suarez.
“If this thing continues to grow, there is a world under which we could actually run the city without taxes,” he said.
Suarez estimates that the profits from MiamiCoin would have to exceed $450 million on an annual basis for the city to be able to operate without the need for taxes.