Miami Mayor Francis Suarez announced on Thursday that the Florida city will soon become "the first city in America to give a bitcoin yield" from its cryptocurrency, MiamiCoin, to residents, CoinDesk reports.
"We're going to be the first city in America to give a bitcoin yield as a dividend directly to its residents," Suarez said during an interview with CoinDesk TV.
He noted that MiamiCoin has made $21 million over the last three months for the city, and said that if that revenue were sustained for the whole year it would equal about one-fifth of the city's annual tax revenue. Suarez said Miami will pay the dividends through a digital wallet, and said that the city will coordinate with several cryptocurrency exchanges to provide wallets for residents, as well as helping them register and get verified.
Suarez did note that the city faces "a challenge" in deciding how to distribute the money.
"Is it going to be, for example, taxpayers? Is it going to be people that vote in the city? People that have a city address? That's going to be a challenge," he said.
The mayor went on to say that this method could eventually get rid of the need for the city's residents to pay taxes.
"I do see very quickly a world where the satoshi system is what is used to make payments," Suarez said. "We need for people to understand that ... yes, we want you to hold bitcoin but we also want to increase the utility of bitcoin."
Patrick Stanley, the community lead for CityCoins, which created and runs MiamiCoin, told CoinDesk TV that Suarez "just turned his city into an oil-producing country that gives bitcoin yield to its citizens. That's incredible."
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