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Cryptocurrency team looks at broad county opportunities – Miami, Florida

Miami, Florida 2021-09-21 23:12:36 –

Written by Gabriela Henriquez Stoikow September 21, 2021

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The Miami-Dade Cryptocurrency Task Force is in operation and is already exploring the possibility of starting to accept cryptocurrencies and other digital currency forms as payment methods for taxes, fees and services throughout the county.

The group is also investigating whether the county can make payments on its exchanges and is looking for opportunities to use blockchain technology in other areas.

The Commissioner’s appointment will meet for the first time on September 15 and will report within 180 days to explain the county’s interests and risks. The commissioner must decide if they are willing to use cryptocurrencies within the county.

Task Force members can investigate what has happened in other municipalities, survey county residents to assess their interest in cryptocurrencies, and provide trading and management services to the county for future meetings. Find a vendor and best practices.

There is a consensus that the group wants to submit a report solely for the purpose of serving the interests of the residents of the county. They are still in early conversation, but they are stepping at a time to avoid violating the regulations already in force in the county.

One of the main concerns of Bitcoin users is the volatility of exchanges. For example, on September 7, the same day that Bitcoin and Ethereum prices fell 17%, El Salvador adopted cryptocurrency as fiat currency.

Andrew Carrie Bernard Jr., CEO and co-founder of Bitcoin and a member appointed by Commissioner Kionne McGhee, said Bitcoin proved to be unstable in the short term, Miami Today. I explained to. “But when you look at Bitcoin, historically it’s up almost 200% year-on-year, so it’s actually a pretty good value storage in the long run,” he said.

Task force experts agree to consider all the possibilities of the county. One possibility is to contact an entity that acts as a third party between the user and the county. They accept Bitcoin paid to the county, exchange it for US dollars, and give it to the county in fiat currency.

Another option is for the county to accept Bitcoin, offload some of the risks by converting money into US dollars, and depending on the risks they are willing to take, only a small portion of the Bitcoins they receive. Is to hold.

The first item on the group’s agenda is to do at least two surveys. Ask Miami-Dade residents if they know, understand, or are interested in using Bitcoin as a payment method to government agencies. The second investigation goes to the county commissioner. They are in a position to understand the pulsation and temperature of their members, helping task force members understand their motivations in cryptocurrencies.

Daniel Stabile, a partner in Shutts & Bowen LLP’s Miami office, was nominated by Commissioner Sally Heyman and appointed Vice Chairman of the Task Force. People already have cryptocurrencies and can pay the county directly for the service instead of paying a third party to convert it to US dollars.

Stabile also believes that once the county begins accepting cryptocurrencies, it could attract people to the county. It can help educate people about what cryptocurrencies are and how dangerous they are.

“At our first meeting, members of the Task Force unanimously expressed the exact same idea that the most important thing here is to do it in a way that helps people. I was happy to see that in Miami-Dade County. “

Bernard also sees cryptocurrencies as another alternative to payments. “Currently, they accept various credit cards, accept checks, and adding Bitcoin to them only adds another payment,” he said. “It only increases the accessibility of being able to pay goods, services and taxes to the county.”

He also said that “this may be a good option for those who don’t have a credit card at all,” as some people don’t even have a credit card.

For the county, Bernard said merchants charge processing fees, which could be an opportunity to reduce the cost of traditional payment methods. “Allowing people to pay in Bitcoin, as Bitcoin payment processors may be a cheaper option for the county and may be cheaper in terms of merchant fees accepted by the county. Can be a more incentive. “

In addition, Bernard said that if the county chooses to hold any of the Bitcoins it accepts as payments, it will be a balance sheet hedge. “As inflation rises in our economy, Bitcoin has demonstrated that it acts as a hedge, as an uncorrelated asset in keeping it on the balance sheet.” Some, such as MicroStrategy and Tesla. Companies already have Bitcoin on their balance sheet.

At upcoming meetings, the Task Force will investigate which companies can become the county’s cryptocurrency managers to avoid cyberattacks.

“Bitcoin, the dominant blockchain, is very secure and has never been hacked,” said Stábile. “Currently, companies and businesses that may have Bitcoin or cryptocurrencies are hacking these entities.”

“But there are some great companies that have never been hacked, so we will do everything we can to make our cybersecurity best-in-class,” says Stabile.

Bernard emphasized the importance of carefully following the county’s sourcing process when choosing a vendor recommended by the Task Force. “There are several other counties that have tried this so far, and it was very difficult to implement the process because they did not follow procurement methods when choosing the right vendor.”

Bernard also said that the Task Force will work closely with county lawyers to ensure that all laws and regulations are complied with and determine what can be done if cryptocurrencies are accepted. Said to do.

Stabile explained that one of the group’s most difficult tasks may be to see how cryptocurrencies are integrated into the legal system. Currently, some cryptocurrencies are considered securities and are regulated by the Securities and Exchange Commission. In addition, some cryptocurrencies are considered commodities and are regulated by the Commodity Futures Trading Commission.

“I think one of the biggest challenges we face in a regulated environment is the inconsistency of law and regulation, which makes it difficult to understand what the law is,” says Stabile. I am. “It’s costly and complicated.”

Nevertheless, he said there was already effort by those who have an influence on the regulatory environment. “Just last week there was a meeting of state banking supervisors who announced the proposed uniform law, which is designed to bring all states together on the same page,” Stábile said. .. “People are aware of the problem, and over time I think the regulatory environment will mature and the rules will become clearer.”

The Miami-Dade Cryptocurrency Task Force was established in April by a resolution sponsored by Commissioner Daniel Cohen Higgins. Similar task forces have been created at the state and local levels. In 2019, the Legislature established the Florida Blockchain Task Force to study how states, counties, and local governments can benefit from blockchain payments.

The city of Miami has already launched its own cryptocurrency, Miami Coin. Some companies in New York, Los Angeles and San Francisco have already accepted this type of payment.



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