In recent months, multiple cities have expressed their desire to adopt cryptocurrency as a form of payment for taxes, government fees, and more. Soon, residents could be able to pay their DMV fees with Bitcoin or Ethereum as well as the U.S. dollar. Here’s a look at some of the cities looking into making cryptocurrencies legal tender. If these cities continue to adopt cryptocurrency, they could give it an even more considerable boost than it already has received over the past couple of years. They could also change many aspects of how cities operate.
Miami, Florida
Miami has been at the head of the charge with crypto adoption in the United States. Last year, Mayor Francis Suarez sought to give every citizen of Miami a crypto wallet. This was so citizens could participate in staking MiamiCoin, crypto exclusive to the city of Miami. Suarez’s vision is to have citizens of Miami earn crypto by stacking their MiamiCoin. 70% of interest accumulated through stacking would be distributed to citizens, while 30% would go to the city’s reserves. In the boldest version of Suarez’s vision, MiamiCoin revenues could mean citizens wouldn’t need to pay taxes.
New York, New York
Not wanting to fall behind, New York City Mayor Eric Adams is pushing to make the Big Apple the U.S.’s cryptocurrency capital. Like Miami, New York is moving ahead with its crypto adoption through a CityCoin. NewYorkCityCoin is the second city-oriented crypto in the United States, after MiamiCoin. Mayor Adams is putting his money where his mouth is with crypto; the mayor has vowed to receive his first few paychecks entirely in crypto.
Austin, Texas
Austin is looking to become one of many cities that are embracing cryptocurrency. The goal is to make it easier for citizens to pay their taxes and other government fees, such as parking tickets and DMV fees. Earlier this year, Mayor Steve Adler submitted two proposals to the Austin City council to achieve this. Mayor Adler plans to follow Miami and New York in adopting a CityCoin for Austin. Mayor Adler’s proposals are scheduled to undergo a City Council vote on March 24th. It will be interesting to see if cities stick to only specific cryptos. If crypto adoption goes on, we could soon see the adoption of less valuable popular tokens. Can you imagine paying taxes in SHIB or ADA?
Lugano, Switzerland
The city of Lugano on Lake Lugano in Switzerland will begin accepting cryptocurrencies as payment for some taxes, municipal services, and other expenses. The city is accepting payments in three cryptocurrencies; Bitcoin, stablecoin Tether, and LVGA. Although not a CityCoin like MiamiCoin or NYCCoin, the LVGA token seeks to cover the same functions for Lugano. Lugano’s crypto adoption marks yet another instance of a government utilizing cryptocurrency payments to provide an additional layer of convenience for its citizens. It’s also another example of fiat currency and crypto co-existing in a financial system.
The State of Colorado
The state’s government has moved to allow crypto payments for taxes statewide at some point this year. Summer appears to be the goal, but there could be some wiggle room for such an overhaul. The adoption would allow residents to pay their taxes with Crypto. Governor Jim Polis compared it to a credit card payment– except there would be no returned payments. Polis also praised crypto and blockchain technology at ETHDenver earlier this year. Polis claimed blockchain technology’s transparency could help lessen people’s lack of trust in government and corporations.
