The Mayor of Miami announced that residents would receive the first “bitcoin yield” as a dividend. Miami’s mayor mentioned this while talking on CoinDeskTV. According to Mayor Francis Suarez, Miami will be the first city in the US to distribute dividends in the form of bitcoin.
Bitcoin Dividend
The mayor said that the city would be sharing part of the gains it has earned via bitcoin with its residents. The bitcoin dividend payment will be made using digital wallets. MiamiCoin was launched utilizing CityCoins in August of last year. CityCoins is a protocol that is open source that shares 30 percent of its gains with cities when its coins are mined or purchased.
Miami’s Cryptocurrency Gains
Miami’s cryptocurrency seems to be doing quite well. It generated gains in excess of $21 million in just three months. If the same performance extends across 12 months, then it could generate around $80 million in profits for the residents of Miami in one year. This would be equal to around a fifth of Miami’s tax budget, around $400 million. Mayor Suarez expressed his resolve to make his city the first in the US that allocates dividends to its residents via bitcoin.
Is Bitcoin Miami’s Answer To City Taxes?
Not only that, but the mayor is also hoping that the bitcoin venture will generate enough revenue so that it can provide the required annual tax revenue to the city of Miami. If that happens, the city’s residents will not have to pay taxes. New York City is also trying to cash in on the cryptocurrency boom. According to CityCoins, the NYCCoin (New York’s digital currency) is being mined. This was done in response to the request made by New York City mayor Eric Adams. The mayor of New York has pledged that he will receive his first 3 paychecks in the form of bitcoin. In addition, the New York mayor has spoken of his vision to turn his city into a worldwide technology leader.
Bitcoin Trends
Although bitcoin is at the center of emerging technologies, it is known for its rapid price fluctuations. Hence, it is considered a high-risk investment and a very volatile asset. In October 2021, the Fed revealed an inflation percentage that is the highest in 3 decades. Leading cryptocurrencies like Ethereum and Bitcoin made gains in response to this announcement. This indicates that people might be willing to shift to bitcoin to avoid losses due to high inflation.
Who Will Get These Dividends?
Who gets these dividends is still not clear, Miami must first specify who is eligible for the bitcoin dividend and how much they should receive. There are also technological challenges that could hinder dividend distribution. Crypto exchanges and tech companies will have to make digital wallets for dividend recipients, a process that will entail mass registration and verification.