The 95% drop in the price of Miami’s mayor-backed crypto MiamiCoin has dampened the hopes of Miami's city leaders and raised red flags for regulators looking into cryptocurrency transactions.
Miami's cryptocurrency, MiamiCoin, was cashed out for the first time on Feb. 2, depositing $5.25 million into city coffers. Mayor Francis Suarez of Miami called it a "historic moment" and predicted that cryptocurrencies would eventually replace municipal taxes as the government's primary source of revenue.
The coin's creator, CityCoins, has been as excited, describing the coin as a financial experiment that will empower individuals with a "community-driven revenue stream" while inspiring new digital city services.
Miami isn't the only city with huge plans for cryptocurrency. In November 2021, CityCoins launched a similar cryptocurrency for New York, and it aims to introduce one for Austin, Texas, soon. Other cities have followed suit, with Fort Worth, Texas, for example, planning to...