Miami vs New York: Who will become the new “capital” of digital money in the US?

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The ”conflict” between the two U.S. megacities is intensifying over who will become the center of the cryptocurrency industry in the U.S. At the moment, both have proceeded to create a digital currency, which they don’t actually control.

They have built “armies” of riches, but they have also made “ashes” fortunes. According to many, they can revolutionize the global economy in the 21st century. For many others, it is nothing but a dangerous digital “bubble” and a tool for illegal activities and dealings.

In any case, cryptocurrencies are gaining more and more interest and there is no denial that are here to stay. Plus, not only individuals and groups, but also businesses, official authorities, and even states (such as El Salvador) are starting to adopt the new way of transacting.

Now, it is becoming an “Apple of Discord” between Miami and New York, as municipal authorities both seek to turn their American megacities into a key hub of the cryptocurrency industry.

Miami vs New York: Who will become the new "capital" of digital money in the US?
– Miami Beach

“Magic City” calls… Bitcoin

Miami’s 44-year-old Republican mayor Francis Suarez wants to “bet” much more on his city than its cosmopolitan air, sun, and sea.

Thanks to its low taxes and idyllic surroundings, the so-called “Magic City” has become even more attractive to many technology workers over the past two years.

Many flocked there from California and New York, and with them relocated to Miami financial companies and some cryptocurrency companies.

Suarez gave his “blessings” for the creation of cryptocurrency in his city. The name of this: MiamiCoin.

Built on Stacks blockchain, linked to Bitcoin, it is essentially a nominally digital currency of Miami – since local authorities do not have control over it.

Following municipal approval and under the existing framework, the miners (who through computers and new technologies engage in the “extraction” of cryptocurrencies) give practically only 30% of their profits to the city’s coffers.

Be that as it may, since August (when it was launched), MiamiCoin has generated total —and theoretically—revenues of more than $21 million – according to Miami City’s MIA wallet.

In support, Suarez announced that for December he would be paid in Bitcoin, as it was.

Now, he is seriously considering doing the same with municipal employees relatively directly, even with the collection of taxes.

And when -and if – the “golden hen” does a lot… “eggs”, Suarez envisions to distribute MiamiCoin, as a digital dividend, to every permanent resident of the city.

According to the 44-year-old Republican, this is a realistic diversification of the local economy, largely based on the provision of services, but hard-hit by COVID-19.

To this end, it organized a Bitcoin conference in Miami in June, attended by over 12,000 people, including bankers, technology executives, and crypto-entrepreneurs.

Next April, it organizes a second one.

“Big Apple’s” counterattack

It may be another month before Eric Adams officially takes office as New York’s new mayor. However, he did not miss an opportunity to lift the “gauntlet” that Suarez threw.

Two days after the Miami mayor announced that he would be paid in Bitcoin, he was quick to announce via Twitter that he would receive his first three salaries in cryptocurrency.

The former New York police chief has long proclaimed that he wants to make his city “the center of the cryptocurrency industry.”

He also wants municipal employees to be paid with digital currency. It aims to integrate cryptocurrency courses into the curriculum in New York schools.

He believes that the adoption of digital currencies – despite their great instabilities – will lead to higher-paid jobs and boost the development of the local economy.

With his own “blessings”, in fact, the “mining” of New York’s cryptocurrency, the NYCCoin, has already begun.

Today, amounts equivalent to over $26 million have been raised in the digital wallet of the American megalopolis.

“Bubble” or revolution?

In practice, however, neither MiamiCoin nor NYCCoin is money. They’re more like title deeds, and many analysts warn that the “treasure” can easily become “carbon”, in the absence of strict control.

For now, other U.S. cities, as well as U.S. regulators, are closely monitoring the risky experiment.

Between the “Big Apple” and the “Magic City”, however, there are differences.

In New York, for example, a state income tax is in place, and the New York state has encryption regulations, unlike Florida.

Miami, on the other hand, is looser in taxes and rules. And although it is in the same time zone as the East Coast, it is considered a “gateway” to Latin America.

For all this, experts in the field estimate that the “Magic City” seems to be winning the “Big Apple” in points.

At least at the moment and under the condition that the “magic” will not be lost or that something will not “rot”…

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