Will Miami Really be a Leader in Web3 Services?
How Miami put on a PR Campaign stunt around Bitcoin in 2021, and it worked.
Even American Cities are Turning to Web3
Are U.S. cities really turning to crypto in 2022?
While China has smart cities with facial recognition, convenient payments and super-app access to services, American cities are increasingly turning to crypto and the promises of Web3.
Web3, also known as Web 3.0, is an idea for a new iteration of the World Wide Web that incorporates decentralization based on blockchains.
Miami, a city that will likely be under water in the near future, is running with the the DeFi swag.
Miami is Using Crypto to Appeal to Young Talent
Cryptocurrencies are seen by many as the future of finance, and Miami is aggressively angling to become the world’s crypto capital — in a direct threat to New York’s status as the country’s financial hub, threatening New York’s dominance in finance.
According to Scott Olster of LinkedIn, there’s a growing cohort of local governments that are jumping on the crypto bandwagon, looking at blockchain-based tools to finance municipal services, fund programs and pay government workers. And signs point to the movement gaining additional steam in 2022.
Is this for real? Smart crypto cities of America? Web3 is getting a bit out of control. Miami’s mayor is pitching crypto as a reason for Miami’s new take. The city has reduced its real estate taxes “to the second lowest level since the 1960s,” and it has more room for new development than New York. Suarez also proudly points out that credit ratings agency S&P Global Ratings recently upgraded some of its stance on some of Miami’s bond ratings.
Even Cathie Wood moved from New York to Florida in 2021. So is the crypto pitch working for Miami so far? Cryptocurrency companies FTX US, eToro and Bit Digital have announced plans to expand in Miami, and MoonPay and Orca Capital have set up shop there.
Even serious journalists are trying to say blockchain adoption at the municipal level makes sense. What’s the benefit of adopting a blockchain approach to government? It puts transactions into public view, boosting transparency. And its automation of most processes can reduce red tape and the likelihood of errors.
Can Miami Displace New York in Finance and Blockchain?
Miami trying to compare itself to New York as a financial capital makes little sense to me. One thing is for certain however, banking and financial talent is shifting to FinTech and the crypto sector increasingly. I get it, Miami right. Miami’s vibrant nightlife and warmer weather are certainly a draw for some Millennials seeking the right work-life balance.
But some of the enthusiasm is getting pretty overboard. Some argue that the first step to becoming a crypto-friendly community is updating state law to recognize crypto as property and legal tender. After this regulatory update, a municipality would partner with a crypto processing vendor for payment processing.
Miami using crypto to attract talent is of course very entertaining:
Miami city passed a resolution in February giving employees the option to be paid in bitcoin.
Miami is certainly a trailblazer here. And Suarez’s and Miami’s high-profile embrace of bitcoin has inspired other city mayors to do the same.
It’s suddenly in vogue for American cities trying to attract talent to use the crypto Web3 card. This doesn’t make them blockchain smart cities overnight though.
Miami struck a deal with nonprofit CityCoins, which allows users who mine new tokens to make donations to a city of their choosing.
Mayor Hillary Schieve of Reno, Nev., has proposed a plan that includes using decentralized autonomous organizations to sell crypto-based stakes of city-owned properties to investors.
Miami’s Crypto Pitch is More hype than reality
Is this supposed to get us excited? Given climate change Miami is maybe the last place you should think of moving to, but don’t tell the Bitcoin mob. Miami is even attracting more traditional financial firms. During the pandemic, Citadel Securities moved workers to South Florida, and the private equity firm Apollo Global Management is also opening a new office.
I can understand real smart cities and why consumers would want to live in them. But a crypto smart city? Miami in 2021 hosted a two-day bitcoin conference, and thousands of crypto supporters and market analysts attended the conference, which argues that shows that the USA is in the middle of a crypto boom.
The Mayor of Miami in a press conference stated that he wants the state of Florida to hold bitcoin in its balance sheet. And he would also allow his residents to pay their taxes and pay checks in cryptos.
Bring it on! Miami vice, let the crypto gangsters into town already! Miami beaches and Bitcoin, that’s how America does the smart city concept apparently.
Come to live in the FinTech capital of America that is destined to be underwater soon. Miami, Florida is at great risk of being underwater. When that happens will Bitcoin even still exist is my question.
What happens first, Bitcoin is worth nothing or parts of Miami begin to go underwater? I think we’ll see both of these things within our lifetime. Only in America does being a smart city mean embracing crypto and putting Web3 adoption as some pinnacle of success.
I understand how FOMO works in America and it’s really notable to see entire cities adopting its use and a PR campaign. Well done Miami, what’s not exactly factual won’t hurt you in the United States.