The Philadelphia city government is excited about establishing a collaboration with CityCoins to enhance its treasury using crypto.
Philadelphia is now on the verge of joining the path of Miami, Austin, and New York City by collaborating with CityCoins to create a cryptocurrency for the city of benevolence.
Mayor Jim Kenney of Philadelphia has embraced the idea, citing the government news site Statescoop that his office is “enthusiastic about the potential of donations from a CityCoins program to target pressing problems in the city.”
CityCoins is a Stacks (STX) blockchain software tool that assists local administrations in creating their own cryptocurrency. Stacks transactions are settled through the Bitcoin network.
CityCoins are already being used by New York City and Miami to expand their treasury reserves. 30% of STX tokens mined are transferred to the city's wallet, where they are traded for USD and deposited into the city's treasury. The remaining is held by the miners.
Wheeler said in a Feb. 1 interview that the city would start officially assessing CityCoins to assure that any prospective collaboration they form together adheres with current cryptocurrency laws.
Wheeler discussed the issue of implementing a system that uses a Proof-of-Work blockchain, such as Bitcoin, as an ecological concern. He emphasized that CityCoins does not need users to utilize any extra hardware, which could cause more environmental problems. On February 1, he told Statescoop:
“I think we can simply say, ‘This isn’t Bitcoin and it’s not requiring new servers to be set up and it’s not requiring intensive energy use.’ I think that’s a valid, verifiable statement.”
Wheeler stated in November that the city of Philadelphia would seek to incorporate blockchain technology into its government. He got the idea for the effort from the city of Miami.
Last August, Miami released its MiamiCoin with CityCoins to support the city to generate funds, which Mayor Francis Suarez stated could be utilized to pay all of the city's residents' taxation.
In collaboration with CityCoins, New York City released the NYCCoin in November. NYCCoin miners, like MiamiCoin miners, get paid in STX and BTC for providing the city with tokens.
CityCoins has also partnered with Austin, Texas, though mining has yet to start.