The Miami City Commission on Monday voted to accept millions of dollars in proceeds generated from MiamiCoin, a cryptocurrency created to support the city. But don't expect them to spend that money any time soon.
MiamiCoin was launched in August by CityCoins, a cryptocurrency developer. The city receives 30% of every MiamiCoin that is mined, which is deposited into a virtual wallet. From there, it can be converted to U.S. dollars.
The cryptocurrency produced $4.3 million in just 40 days for the city of Miami, CityCoins reports. As of Tuesday morning, it had generated $4.8 million.
"The city of Miami Commission unanimously voted to accept the gift contributions... generated by the MiamiCoin protocol, marking an important milestone in Miami becoming a global hub for crypto innovation," Miami Mayor Francis Suarez said in a statement.
But it's unclear when, and how, the city will spend that income.
The commission decided to freeze the money for six months as they evaluate potential uses for the funds. They also need to be cautious when they spend it since cryptocurrency is a new technology that is not controlled by traditional banking laws and regulations.
"After extensive due diligence, we’ll be deploying these funds to support high-impact programs that will benefit Miami and all its citizens," Suarez said.
The commission intends to direct the money towards projects that could benefit the city. That could include programs to mitigate the effects of climate change; initiatives to serve underprivileged communities; and crypto education and incentives for technology entrepreneurs.
MiamiCoin trades on OkCoin, a cryptocurrency trading platform that established an office in the Brickell Financial District last month.
Miami is the first city with its own cryptocurrency through CityCoins. In a statement posted to its website, CityCoins said the city will be a model for how municipalities can adopt and use cryptocurrency technology to serve its residents.
"With Miami poised to take full advantage of their protocol contributions, city officials across the globe have on opportunity to activate their own CityCoins and unlock new resources to benefit their city," the statement said.
The move comes as Suarez seeks to brand Miami as a global cryptocurrency capital. Citing his vision, multiple companies in the crypto and blockchain space have either relocated their headquarters or opened an office in the Miami area.
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