Will cryptocurrencies be the end of taxes? Miami bets on it

Miami cryptocurrency

It is the dream of the vast majority of citizens: stop paying taxes without incurring illegalities. And it is something that could become a reality in the near future, or at least that is what the mayor of Miami believes, the city that launched a local cryptocurrency in August with which it has already raised more than 7 million dollars and aspires to collect another 60 in the next year.

“When you think about the possibility of being able to run a government without citizens having to pay taxes, it seems incredible,” Mayor Francis Suarez told The Washington Post.

In Miami, the MiamiCoins project was launched less than two months ago in collaboration with CityCoins, but without an agreement with the City Council. This non-profit, open source computing protocol makes citizens download software to create new cryptocurrencies. The computer user keeps 70% of the coin, and the city with the remaining 30%. The same happens if they maintain possession of the currency for certain periods of time. From CityCoins they point out that the city can access its 30% at any time and allocate the funds to what it considers.

At the moment, the city has not accessed the funds, nor will it do so for a period of six months, to resolve the possible legal implications that this indirect donation system may have. “What if there is some kind of fraud, or if people sue us? We have no reason to believe that it will happen, but anything can happen. We want to be careful,” said Suarez.

Miami cryptocurrency coin

MiamiCoin is supported by a cryptocurrency called Stacks. The miners – computers with the appropriate software to solve certain algorithms – coin the stacks that, when sent to the CiryCoins platform, can generate MiamiCoins in a kind of lottery. The more stacks sent, the more likely you are to get a MiamiCoin.

Currently, it is trading at around $0.03 each currency, so it has appreciated more than 600% from its historical lows on August 26. In addition to mining, MiamiCoin can be purchased at the Okcoin exchange.

The ‘crypto city’

Miami is betting on becoming a benchmark for the world of crypto assets. Already in June it hosted the largest cryptocurrency event in the world, and in recent months the city is receiving financial companies with interests in this new type of transaction, such as Blockchain.com, eToro or Goldman Sachs.

The City Council is studying the possibility that local officials who wish to can charge in bitcoins or that taxpayers pay their taxes -as long as they continue to exist- with the famous cryptocurrency, in the image and likeness of what El Salvador has already launched.

But the MiamiCoin initiative has not gone unnoticed by other American cities such as San Francisco, whose citizens have voted on the CityCoins platform to be the next in this peculiar system of cryptocurrencies and municipal financing.