An increasing number of crypto cities, like Seoul want to launch their own tokens.
The first was Miami which, in August, announced the launch of a token that would basically serve to collect donations.
MiamiCoin the token that improves cities
The token is called MiamiCoin (MIA), and was launched by CityCoins.
According to Anthony Pompliano, MiamiCoin has netted the city more than $10 million, donated by citizens to improve the city and their quality of life.
This is incredible.
MiamiCoin has now generated over $10 million for the City of Miami, all built on top of bitcoin.
That’s $10 million dollars donated to the city government’s pocket to use on improving the city & quality of life of its citizens.
All from private citizens 👇🏼
— Pomp 🌪 (@APompliano) October 8, 2021
According to CityCoins, in the future San Francisco could issue its own token in the same way, but there is also talk of New York and Austin, while Berkeley is considering issuing bonds on the blockchain.
Seoul among the crypto cities
Similar hypotheses are also being considered outside the US, for example in Singapore and Seoul.
In the South Korean capital, the mayor has publicly launched the idea of creating their own digital currency, called S-coin, which could finance social welfare programmes.
In addition to individual cities, entire countries are jumping on the cryptocurrency bandwagon.
First and foremost there is El Salvador, which has chosen a different path, one that does not involve creating its own token, but simply adopting Bitcoin as legal tender alongside the US dollar.
Many countries want a digital currency
Other countries are considering launching their own Central Bank Digital Currency (CBDC): there are already 81 countries exploring this possibility, including China, Russia, Dubai, the Bahamas, Sweden and Nigeria.
However, CBDCs are not cryptocurrencies at all, and have nothing to do with Bitcoin or blockchain tokens such as MiamiCoin.
There are therefore three different paths that are being experimented with.
The first is the most banal, namely the issuance of a natively digital version of the existing national currency. Innovative as this idea may be, it does not turn out to be revolutionary in the slightest.
The second is already a bit more revolutionary, because the issuance of a city token makes it possible to raise funds, as happened in Miami, in a completely new and unprecedented way.
Given the results already achieved, one can imagine that Miami’s example could be followed by many other cities in the future, as city administrations are often looking for funds to invest in improving the quality of life.
Cryptocurrencies and El Salvador’s breakthrough
The most revolutionary, however, is certainly the third, namely the adoption of a cryptocurrency such as Bitcoin as legal tender. It is no coincidence that so far only one country has dared to make such a bold move, and although there are already other countries where similar initiatives have begun to be discussed, to date there is no evidence that any other country has indicated that it really intends to follow El Salvador’s example.
Revolutionary acts such as this take time to be processed, analyzed and understood. Even if the experiment in El Salvador seems to have succeeded for now, one month after its launch, the situation in the Central American country, which for years has had no currency of its own and was forced to use a foreign currency such as the dollar, is indeed pretty unique.