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| Miami Mayor Francis Suarez speaks at crypto-currency conference Bitcoin 2021 Convention in Miami. Source: Forbes |
Miami Mayor Francis Suarez shared his plans to create a Bitcoin ecosystem in Miami and would give a "bitcoin yield" from MiamiCoin as a dividend to its residents, who will get digital wallets from the city.
Francis Suarez announced this on a CoinDest TV interview on Thursday morning. When asked if he envisioned bitcoin being used as cash, including as a tax payment method, Suarez confidently confirmed such intentions.
"I do see very quickly a world where the Satoshi is what is used to make payments; we need to make that leap," the mayor said. "We need people to understand that bitcoin is increasing in value and yes, we want you holding bitcoin. But at the same time, we need to increase the utility of Bitcoin which increases the value even more and also creates more functionality so people can be in a better currency, frankly."
Suarez expressed hopes that "at one point" down the road, his city could run "without taxes," echoing his previous statements on the outcome of MiamiCoin.
MiamiCoin is based on the Stacks protocol that stacks on the Bitcoin blockchain, so there are all kinds of nexuses and involvement between one and other," Suarez said.
However, the connection between Stacks and Bitcoin isn't as closely tied as the mayor believes. Stacks is an entirely separate blockchain, with its own mining system and consensus rules. The project can be considered a sidechain at best and differs altogether from the founding ethos of the Bitcoin project and what it sets out to achieve in society. Stacks also has its own token, which is mined as its holders receive bitcoin in a process Stacks calls "proof of transfer."
Stacks, therefore, relies on the willingness of bitcoin holders to exchange their BTC for Stacks Tokens in a one-way street, hoping for future gains as yield is generated from their "stacking" - a process that is not quite aligned with the incorruptible proof-of-work system that underpins Bitcoin.
The city coin adds another layer and MiamiCoin is mined as "miners" or "stakers" receive Stacks Token, similar to the process above. This creates a reinforcing and self-feeding "economy as both holders and the city receive rewards with no actual work being done besides stacking.
Paying government employees in Bitcoin was his top priority, Suarez told Bloomberg Technology last month, adding he also want to allow Miami residents to pay their fees in Bitcoin.
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