Miami continues to champion the crypto cause, forging new territory when it comes to political support and adoption of crypto.
Miami mayor Francis Suarez is keen on taking part of his 401(k) in Bitcoin, according to a recent report from RealVision, an on-demand video-streaming investment platform. Mayor Suarez spoke to RealVision’s Samuel Burke at a blockchain-centric conference in Las Vegas from Dec. 9-11, 2021, where he also said that he would like to contribute bitcoin to his retirement plan.
A 401(k) is a long-term retirement savings investment plan in the U.S., where an employer deducts an employee contribution directly from their salary before tax deductions. A company called ForUsAll is pioneering Alt401(k), which allows 5% of a retirement-savings portfolio to be invested in cryptocurrency, following research from Yale University and FTSE/Russell University on favorable returns. Cryptocurrencies are a type of digital asset that poses an attractive addition to retirement savings, as they do not track the movements of stocks and bonds. The Alt401(k) offers investors exposure to 40 cryptocurrencies.
Suarez’s Track Record So Far
Due to lower corporate taxes, mayor Suarez has sought to attract tech firms to Miami, and bitcoin has formed a significant part of his campaign to make Miami the next Silicon Valley. He recently revealed his intention to pay out annual bitcoin yields to citizens of Miami from an open-source crypto initiative called MiamiCoin. The MiamiCoin initiative has amassed north of $21M, and has shown the interest of its citizens in crypto. Citizens of Miami were allowed to mine the base cryptocurrency called Stacks, have them converted to MiamiCoin by CityCoins, and retain 70% of the minted coins.
Suarez receives his mayoral paycheck in Bitcoin via the Strike App. However, he does conventionally receive income through his legal practice and membership in a private equity firm.
He has consulted with the Miami-Dade County commissioner to determine the best way forward for the tax initiative that would allow taxes to be paid in bitcoin.
Suarez Faces Regulatory and Infrastructure Hurdles
Mayor Suarez faced some challenges when he sought to invest city funds in cryptocurrency, as state statutes do not permit state funds to be invested in volatile assets like bitcoin.
He has expressed a desire to pay government workers in bitcoin and allow municipal levies to be paid in bitcoin. He has put forward a request for proposals on how to manage the city payments, having hosted a cryptocurrency exchange industry day from Dec. 6-7, 2021.
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