By Lucy Hooker
Business reporter in New York.
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The mayor of Miami is a big fan of cryptocurrencies.
Miami has a lot going for it, including the sunshine, the beach, and the Cuban coffee. The mayor of the city wants to be the first to create a new way of raising money through a new cryptocurrencies.
The Republican told the British Broadcasting Corporation that there could be a future scenario in which Miamians would no longer need to pay municipal taxes.
He hopes one day to be able to give every resident a Miami coin as a kind of digital dividend.
Miami is being established as a centre for cryptocurrencies by Mr. Suarez.
He believes that we have a unique opportunity to change our economy. Before the Pandemic, over 60% of Miami's economy was service sector-based. I won't pass on the chance to change that because we were vulnerable to Covid.
The other mayor in the race for the US's first virtual capital are not the only ones. Eric Adams is about to take over as New York mayor.
Cryptocurrencies are either about to change the global economy, circumventing national governments' hold on finance, or they are a risky and unstable tool that enable illegal activities, such as drug dealing.
A digital product is a digital product created by computers without the backing of a central bank or payment system.
Anyone who is willing to invest the time and money to set up the necessary computing equipment can mine, or even establish their ownCryptocurrencies. They can be bought and sold.
The best known criptocurrency,Bitcoin, has attracted enormous attention, has been very volatile, and fortunes have been lost and made investing in it. Many other cryptocurrencies have been established.
New York will become a digital currency hub under Mr Adams, a Democrat who takes office in January. He wants to teach New York schools how to use cryptocurrencies.
The New Yorker requested the same for his first three months' pay as Mr. Suarez did. Mr Adams supports the city's version of a coin.
When I become mayor of New York, I will take my first three paychecks in digital currency. NYC is going to be the center of innovative industries. Just wait!
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Eric Adams is from New York.
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The rivalry may be about sending out signals, but the mayors are serious about establishing their city as a hub for cryptocurrencies.
The Miami conference attracted 12,000 people, including bankers, tech executives and scurvy entrepreneurs. The next one will be in April 2022.
The idea of a city-based token, like MiamiCoin, is another way to show commitment to the sector.
Anyone can mine. Some of the mining proceeds go to the miner. The rest goes to the nonprofit that underpins the city token.
70% of the MiamiCoin is distributed to all the holders of MiamiCoin and 30% is given to the City of Miami.
According to City Coins, MiamiCoin has generated over $20m for the city, with around 3,500 people taking part in the mining process.
The name of the coin is important, cautions a financial lawyer at Actuate Law in Miami and Chicago.
"It's like a security that needs to be traded and then cashed out at some point."
Ms Tarkowski said that the value is based on supply and demand. The value of the token at the time of cashing it out is the same as that of a stock.
The MiamiCoin has not yet been translated into spending money for the city, although Mr. Suarez says they are converting some of it into dollars.
He said they should be expecting $5m in December.
New York's digital wallet has already generated more than $25m in NYCCoin.
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In June, 12,000 people attended a Miami conference about Bitcoins.
Other cities are watching to see how this experiment pans out. The opinion is not unanimous.
Cryptocurrencies have a lot of other risks. They have a long history of association with criminal activity and have been involved in numerous cryptocurrencies scam. Regulators are trying to catch up with the rules that are in place.
John Reed Stark, a consultant with years of experience at the SEC and in academia, thinks that thecryptocurrencies could be riding for a fall.
He predicted that whatever they do with the digital currency is going to be a disaster. He believes that cryptocurrencies is an elaborate Ponzi scheme and the ultimate hustle, due to its advocates ramping up interest in a succession of new hyped up projects.
The emperor has no clothes. He said that if a bank regulator or federal regulator came along and said you cannot do this, they would probably intervene and say you are facilitating criminal enterprises, and you are peddling products that have no intrinsic value.
Mr Reed said that there's good reason for the SEC to be looking at cryptocurrencies. He thinks that trading in blood diamonds is worse than acceptingcryptocurrencies.
Elizabeth Warren, the Democratic senator, called for stricter regulation, as did Donald Trump, the Republican former president.
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New York is the centre of the financial sector and would like to attract more business.
The administration was "exhausted all avenues of due diligence", according to Mr Suarez.
The mayors are being praised for their readiness to innovate.
A variety of different assets are made by the municipalities. Ms Tarkowski said that some of them invest millions of dollars in real estate. "To me, this is just another investment vehicle and a very creative one for a municipality to do".
She argued that the view of cryptocurrencies as a criminal is outdated because so many people are investing in the sector.
If it could help supplement their funds, city mayors would be foolish not to look at new sources of income.
She said that she would applaud Mr. Suarez for his ingenuity and creativity.
