A new proposal being considered by the Miami-Dade County government could pave the way for residents to pay local taxes in cryptocurrency.
This week, Danielle Cohen Higgins, a district commissioner whose District 8 covers parts of South Dada, passes a resolution in Miami-Dade’s Infrastructure, Operations and Innovation Committee calls for the creation of a working group on cryptocurrencies.
The working group would examine the feasibility of allowing residents to pay taxes, fees and services for their counties using digital currencies such as Bitcoin, Litecoin and Ethereum. Resolution also invites a 13-member working group to issue recommendations on other cryptocurrency initiatives.
“The item would establish a working group that could explore the feasibility of using cryptocurrencies in Miami-Dade County, to explore any potential benefits and pitfalls that could result from its use. It is important to explore all ways that can support expanding technology and the presence of startups. for the benefit of our economy, ”says Cohen Higgins New Times. (A copy of the proposed resolution can be found at the end of this article.)
The proposal comes amid a growing wave in Miami to accept investments in cryptocurrencies and technology, and some elected leaders are pushing for the region to become a new technology hub.
Miami Mayor Francis Suarez was a vocal advocate for the mission, trying to hire technology entrepreneurs with flattering tweets i advertisements. Cohen Higgins’ proposal is cited February’s Suarez resolution which asked the city of Miami to study whether and how it can use Bitcoin to pay its employees and businesses.
Just last month, county commissioners approved a A $ 135 million deal sell the rights to name American Airlines Arena, home of the Miami Heat, a cryptocurrency exchange company FTX, founded just two years ago by 29-year-old MIT graduate Sam Bankman-Fried.
Much like stocks, cryptocurrencies like Bitcoin are treated by the Revenue Administration as property and are mostly bought and sold through stock exchanges like FTX, where their prices vary from day to day. People can buy cryptocurrencies in whole units or fractions. A person’s covert cryptocurrency is stored in a digital wallet that can be accessed online. Paying county taxes and fees in cryptocurrency would be like transferring shares to the county as a payment – something the county does not currently allow.
Cohen Higgins speaks New Times its goal in creating a working group on cryptocurrencies is to put Miami-Dade County one step ahead of the rest of the United States. She says she was inspired by Suarez’s embrace of technological innovation and wants to support his efforts at the county level by exploring the use of cryptocurrencies for the municipal government.
Other countries have dipped their fingers into the realm of cryptocurrencies as more and more companies in the private sector are switching to accepting digital currencies. In 2018, he became Ohio the first country to accept bitcoin business tax payments, although this has been reported less than ten companies actually used the service. The state suspended the program in 2019.
Otherwise, cities like Dubai is creating its own cryptocurrencies and enabling residents to pay for goods and services within the city limits with digital money.
Although the use of cryptocurrencies by municipal governments is still a largely untested frontier, Miami-Dade County may take advantage of digital currency and its benefits.
Hemang Subramanian, an assistant professor at the Florida International University Business School who studies cryptocurrencies and blockchain, says New Times that cryptocurrency can be attractive to Miami and its large population of people from other nations.
Because cryptocurrencies are kept in digital wallets and are not tied to a specific country, Subramanian explains, foreign investors and residents would not have to pay a replacement fee to change their home currency into U.S. dollars and then again. That would save them money and reduce transaction delays, making it easier for foreigners to pay the county, he says.
Subramanian says it might be feasible for Miami-Dade to accept digital currency payments, noting that companies love PayPal already allows users to pay using crypto.
The risk lies in the potential price volatility of cryptocurrencies. Digital currencies like Bitcoin are known to vary greatly in value meteorological highest to lowest temperatures – Although Bitcoin prices are rising overall. Subramanian says governments could risk losing money if they don’t sell cryptocurrency assets at the right time, but he says they should gain in value in the long run.
Cohen Higgins ’proposal will go before the Innovation Committee this afternoon. If the case passes, it still has to be approved by the People’s County Commission.
The commissioner says she hopes to attract technology entrepreneurs and investors to her district and bring employment opportunities to South Dade.
“I would like the technological boom that is already underway to be eradicated in South Miami-Dade County,” she says. “I’d like them to consider us and sit down at the table. If we should have a technology or innovation park [in South Dade], that would be really helpful. “
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