Miami Mayor Francis Suarez discussed MiamiCoin, a city-specific cryptocurrency, on "Mornings with Maria" on Monday, arguing that the model could "revolutionize the way governments are funded in the future."
Suarez, who has dubbed Miami the crypto capital of the world, told host Maria Bartiromo that MiamiCoin generated more than $5 million for the city in the last 30 days.
Last week, Miami’s city commission voted in favor of accessing about $5 million worth of MiamiCoin.
For every MiamiCoin that people mine (or create) using a base cryptocurrency called Stacks, which has its own token, Miami gets funding that elected leaders can use to improve quality of life for city residents.
"The @CityofMiami decision to accept the gift contributions generated by the @mineCityCoins Protocol-currently valued at $4.3M-represents a major milestone in Miami’s quest to become a crypto innovation hub," Miami Mayor Suarez wrote in a tweet last Monday. "Funds that will directly impact the lives of all our residents!"
Speaking on "Mornings with Maria" on Monday Suarez elaborated explaining that "every time MiamiCoin is exchanged between one person and another, the protocol requires 30% of the reward for that mining transaction to go directly to the city."
"It is generating $2000 every 10 minutes and over $5 million in the last 30 days so it’s on pace to raise about $60 million," he continued, noting "it’s not an involuntary tax and it’s not philanthropy."
"It’s something that is completely different and could revolutionize the way governments are funded in the future," Suarez went on to explain.
"It is theoretically possible that the city of Miami, through MiamiCoin, could generate enough taxes so that our residents don’t have to pay one cent in taxes. That would be revolutionary."
MiamiCoin is the first CityCoin, which is a city-based token with plans to expand to other cities besides Miami. The cryptocurrency is completely community-sourced and community-driven.
As Suarez had indicated on Monday, about $2,000 worth of Stacks is transferred into the city's cryptocurrency wallet every 10 minutes, with an average of 35 miners competing to create MiamiCoin within the same period of time. Funds from those newly mined MiamiCoin goes to the city itself, Patrick Stanley, the community lead of CityCoins, told FOX Business.
In other words, the city has earned nearly $5 million just stemming from people creating the cryptocurrency, Stanley explained.
"We want to be the most innovative city on the planet because we understand the future of high paying jobs in America is relying on creating innovation economy," Suarez told Bartiromo on Monday.
"And so for us, in Miami, we want to make sure that we are inviting that kind of innovation so that we can have organizations like CityCoin create and innovate in our city."
CityCoins said in a blog post last Monday that the City of Miami Commission and Suarez have already committed to allocating the funds toward initiatives targeting underprivileged communities, climate change and rising sea levels, and crypto education, though none of the funds have been spent yet.
On Friday, Suarez tweeted that "the City of Miami is now at the lowest level of homelessness since 2013."
Speaking with Bartiromo, Suarez explained that Miami is now down to 510 homeless people in the entire city due to the "comprehensive buffet of benefits" for the homeless population in the city, which includes housing, food, mental health and drug counseling, as well as vocational training.
FOX Business’ Audrey Conklin contributed to this report.