The City of Miami will reportedly soon give out a “bitcoin yield” from the staking of its cryptocurrency to its citizens, the city's mayor said Thursday.
Mayor Francis Suarez made the announcement on CoinDeskTV, declaring that "we're going to be the first city in America to give a bitcoin yield as a dividend directly to its residents."
The yield comes from the staking of the city’s own cryptocurrency, MiamiCoin, which was introduced early this year and and has earned over $21 million in the past three months for Miami.
Suarez said the city will make the payments through a digital wallet and will work with a variety of cryptocurrency exchanges to allow its residents to acquire a wallet, register and get verified.
The mayor added that in the long run, the approach could potentially eliminate the need for Miami residents to pay taxes, which would be “revolutionary.”
The Big Apple will soon be getting its own cryptocurrency: CityCoins said it activated NYCCoin mining beginning Wednesday.
CityCoins said it was acting on a request from New York mayor-elect Eric Adams, who recently said that he would accept his first three salary payments in Bitcoin.
Adams' pledge was a response to Suarez's Twitter statement that he would accept his next paycheck in Bitcoin.
Bitcoin hit a record high of an all-time high of around $68,950 on Wednesday before prices began to fall.
Nicholas Cawley, an analyst at DailyFX, said the sell-off in the cryptocurrency market "was a sharp reminder — to short-term traders at least — that volatile price moves are always around the corner."
Cawley noted that Bitcoin and Ethereum both made fresh all-time highs after the release of the U.S. inflation numbers that showed price pressures at a 30-year high.
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"The sharp move lower later in the session has been attributed by some to fears that beleaguered Chinese property giant Evergrande had missed coupon payments on one of its dollar bonds, although there remain conflicting reports over this," Cawley said.
"Traders with a longer-term view on BTC and ETH may well use this recent sell-off to build their positions as sentiment going forward remains positive," Cawley said.
Bitcoin was down nearly 4% to $65,015 at last check Thursday, according to CoinDesk.