The mayor of Miami, in the United States (USA), Francis Suarez, reported this Thursday that he will begin a process of creating accounts in digital wallets - wallets - for the inhabitants of the city. The intention is that they use it to give movement to the returns in bitcoin (BTC) that their government plans to deliver them.
This was revealed this Thursday in an interview on CoinDesk.TV, where he highlighted that Miami will be the first city in the US to give a yield, or BTC rewards as a dividend directly to its residents.
“We are going to create digital wallets for our residents and give them a bitcoin directly from the performance of the MiamiCoin (MIA),” he said. This means that the rewards that are given with BTC will have their origin in the participation of the users with the local token created in August.
It should be clarified that MIA is a token launched by CityCoins, an independent project that wants to bring cryptocurrencies to all cities in the US. It is developed on the Stacks network, a Bitcoin side chain in which the execution of smart contracts is possible. and the creation of decentralized platforms, explains CriptoNoticias.
The purse, a bigger challenge
On the wallet that will be used to manage the BTC delivered by the City Council, Suárez did not give further details, but said that one of the most challenging parts of that project will be to identify the users and beneficiaries of the wallets, such as those who vote or pay. taxes, in addition to the technology involved.
“We have to work with a variety of technology companies,” he said, referring to exchanges, which in the centralized case, have registration and verification systems in order to reduce the risks of fraud and other crimes.
He also revealed that the project began cooking a week ago, with some 5,000 people arriving in Miami. He specified that they will help them and teach them everything that is needed in the “crypto movement.” So he promised to give them “hundreds of dollars in bitcoin.”
“So we are configuring it (the yield project) as a kind of pilot with them and we will start from there,” said Suárez.
Spending money unnecessarily?
Francis Suarez’s announcement raises questions, since, for sure, there are already dozens of digital wallets for bitcoin created by private parties. Building a new portfolio involves a significant expenditure of public resources, in this case, the Mayor of Miami. It’s worth it?
Apparently, and according to what the official explains, yes, or at least for them, since it is not a properly skilled purse, but rather a custody platform. This means that the State will control it and each transaction will be associated with its identity: goodbye to the pseudo anonymity of Bitcoin (for those who use this wallet).
Curiously, this goes hand in hand with what the Financial Action Task Force (FATF) proposes to regulate bitcoin: transactions that are traceable and associated with an identity , under the guise of preventing money laundering and other crimes, always wanting to dent the decentralized essence of the market pioneer cryptocurrency.
Who is behind these purses?
According to Suárez, there is no clear path, although he said that “all the different technologies” that have efficient ways of operating a digital wallet are being analyzed. “So that’s going to be a big part of the fun and enjoyment,” he said.
Therefore, he appealed to education among Miami residents, because when seeing an inflation of 6%, as the one registered in October in the United States according to the Federal Reserve, “it is clear that people take their money in dollars and put it in a store of value”.
“(Because of that) they feel confident, because it is not driven by people who can manipulate it for their own political ends,” he said.
Suarez said satoshis are being widely used to make payments, urging “that leap.” To do this, he asked people to understand that BTC increases its value more and more and, therefore, they want to promote it among all and increase its usefulness in the city.
The Bitcoin effect
Miami, precisely because of its mayor, has been one of the most probitcoin cities in the US and around the world. Salaries, services and other things can be paid with the first cryptocurrency, as well as with the others.
In fact, Suarez said that he would earn his total salary in bitcoin. This was announced by himself at the beginning of November, when he responded to a message on Twitter exclaiming that he would cash his next check “100% in bitcoin”.
So much was the impact in Miami that it resonated in New York. It is the second city in the United States that is on track to give full acceptance to BTC, according to Mayor-elect Eric Adams.
The next mayor has insisted on “looking at what is preventing the growth of bitcoin and cryptocurrencies” in the city. In addition, the possibility of adopting your own cryptocurrency has emerged, following the example of Miami.
While it is true that Suarez’s new move puts Miami a step forward in transforming a crypto-friendly city, doubt remains about its effectiveness. More, if you are considering the possibility of launching your own wallet for the Mayor’s Office. There is evidence that these centralized and governmental products often fail and, again, try to destroy the essence of bitcoin: that is the case of El Salvador and Chivo Wallet. We will see.