June 22, 2021

Miami’s Mayor Considering Paying Salaries and Accepting Taxes in Bitcoin

3 min read

Miami’s Mayor Francis Xavier Suarez is all set to put his city in the spotlight of technology fans and business owners and Bitcoin could be his brand-new endeavor.

Suarez just recently informed journalism that as he sees it, Bitcoin might become the “most significant story of the next few years.” and according to a Forbes evaluation, making use of Bitcoin as a means of payment for public employee wages might be one of the actions to be taken on Suarez’s course to turning Miami into the next Silicon Valley.

The Road to a Bitcoin-Friendly Miami

Suarez has been rather vocal about his expectations, however he recently stepped on the gas when it pertains to supporting technological advancements in his city. The mayor of Miami just recently introduced the “How can I assist” project to raise funds to broaden Miami’s tech market.

As far as cryptocurrency payments are worried, Francis Suarez hardly indicated that this is a concept under factor to consider. According to reports, there could be 3 courses to take in the quest to make Miami a Bitcoin-Friendly city.

The very first is specifically to provide workers the chance to receive their salaries in Bitcoin. This idea has already been explored and would need to go through a series of legal procedures before being approved.

The second proposal he is thinking about is to enable taxes to be paid in Bitcoin. This decision is much easier to execute as there are currently legal precedents that give hope to those in charge of possible execution.

Finally, he once again spoke about his determination to invest part of the general public wealth in Bitcoin. This, while not illegal on the face of it, might generate greater resistance considering the volatility of the investment.

Is Bitcoin a Good Investment for a County?

Suarez did not divulge the amount of money he would be contemplating investing, nor did he supply more information on these propositions’ current status. However, late in 2015, he said he was open to exploring an investment of about 1% of the city’s treasury reserve into Bitcoin.

This decision would be a major detour from Miami’s romance for money and fixed earnings investments. In terms of public laws, these type of low-risk investments are the most obvious choice when it concerns construct and maitain wealth. However, some financiers with a hunger for threat, know the lost oportunity if other financial investments with higher danger to reward ratio are thought about– for instance, Bitcoin quickly rised from $20k to $40k, but it also crashed from $40k to $30k almost as fast. An extremely hazardous lost of cash for a political leader.

Bitcoin is too volatile to be part of Miami's portfolio... Or is it?

Bitcoin has gained and lost $ 10k per token in the last 30 days. Image: Coingecko The idea of having crypto incomes comes hand in hand with his expectations to develop a crypto-friendly legal system. In an interview with FOX Business’ “Varney and Co.” Suarez highlighted Bitcoin’s appeal as a lucrative long-lasting financial investment and said he wishes to enhance the crypto environment.

“We want to be one of the most crypto-forward and technological cities in the nation,” he said. “So we’re looking at … … developing a regulative framework that makes us the most convenient place in the United States to do organization if you’re doing it in cryptocurrencies.”