According to Miami Mayor Francis Suarez, his city will share some of its cryptocurrency gains with its residents and will distribute payments via digital wallets. The proceeds, which are the result of Miami’s decision to stake its cryptocurrency in order to earn Bitcoin, have so far amounted to approximately $21 million in the past three months alone.
“We’re going to be the first city in America to give a Bitcoin yield as a dividend directly to its residents. We’re going to create digital wallets for our residents, and we’re going to give them Bitcoin directly from the yield of MiamiCoin,” Suarez told Coindesk TV.
More news on @CityofMiami being the first city in the world to give a Bitcoin dividend based on @MiamiCoinWallet yield to follow…Miamians get ready! @APompliano @jack @elonmusk @tyler @cameron @brian_armstrong https://t.co/WN5RW0d5Uc— Mayor Francis Suarez (@FrancisSuarez) November 11, 2021
He called the payment a “bitcoin dividend,” but the actual dividend will be earned by staking MiamiCoin (a separate digital currency). In October, Suarez expressed the hope that MiamiCoin would one day be able to support the city without the need for the residents’ tax contributions.
“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 the other,” Suarez said.
Suarez also added that Miami will be making payments via a digital wallet program, through which residents can register and verify their wallets to participate in cryptocurrency exchanges.
Before residents can receive their dividends the city must first define who will be eligible. Possible parameters include taxpayers, voters, or residents, Suarez said.
This is not possible without technological support. To set up the wallets, he said he would need to tap multiple crypto exchanges and companies. This would require large-scale registrations as well as verifications.
Suarez, a strong supporter of bitcoin, doubled his position after US inflation data revealed that prices are growing at an unprecedented rate.
Due to its fixed supply, 21 million coins, bitcoin has been touted as a hedge against rising prices. On Wednesday, bitcoin reached an all-time high following the release of inflation data.
“When you see inflation at over 6%, which I think is an under-reporting of inflation, and you see the price of bitcoin surging, it’s clear that people are taking their money out of dollars and putting it in a currency, in a store of value, that they feel confident in,” he added.
Suarez is committed to making Miami a center for digital innovation. Suarez posted on Twitter in November that he would take his next pay check in Bitcoin. In an interview with Bloomberg last month, the Republican mayor also said that his city would support a plan to employ city workers with bitcoin.