Miami’s Mayor Considering Paying Salaries and Accepting Taxes in Bitcoin

Miami’s Mayor Francis Xavier Suarez is ready to put his city in the spotlight of technology lovers and entrepreneurs and Bitcoin could be his new venture.

Suarez recently told the press that as he sees it, Bitcoin could become the “biggest story of the next few years.” and according to a Forbes review, the use of Bitcoin as a means of payment for public employee salaries could be one of the steps to be taken on Suarez’s path to turning Miami into the next Silicon Valley.

The Road to a Bitcoin-Friendly Miami

Suarez has been quite vocal about his expectations, but he recently stepped on the gas when it comes to supporting technological developments in his city. The mayor of Miami recently launched the “How can I help” campaign to raise funds to expand Miami’s tech industry.

We are officially up and running! Check out https://t.co/DVPodgRCi3 to get in on the #MiamiTechMovement and buy a shirt—if you don’t want a shirt please consider offering a donation (on the landing page) to fund the Ignite Innovation Technology Foundation! 🚀 #HowCanIHelp

— Mayor Francis Suarez (@FrancisSuarez) February 3, 2021

As far as cryptocurrency payments are concerned, Francis Suarez barely indicated that this is an idea under consideration. According to reports, there could be three paths to take in the quest to make Miami a Bitcoin-Friendly city.

The first is precisely to give employees the opportunity to receive their salaries in Bitcoin. This idea has already been explored and would have to go through a series of legal procedures before being approved.

The second proposal he is considering is to allow taxes to be paid in Bitcoin. This decision is much easier to implement as there are already legal precedents that give hope to those in charge of possible execution.

Finally, he once again talked about his willingness to invest part of the public wealth in Bitcoin. This, while not illegal on the face of it, could generate greater resistance considering the volatility of the investment.

Is Bitcoin a Good Investment for a County?

Suarez did not disclose the amount of money he would be contemplating investing, nor did he provide further details on these proposals’ current status. However, late last year, he said he was open to exploring an investment of about 1% of the city’s treasury reserve into Bitcoin.

This decision would be a major detour from Miami’s love story for cash and fixed income investments.  In terms of public policies, these kinds of low-risk investments are the most obvious choice when it comes to build and maitain wealth. However, some investors with an appetite for risk, are aware of the lost oportunity if other investments with higher risk to reward ratio are considered —for example, Bitcoin quickly rised from $20k to $40k, but it also crashed from $40k to $30k almost as fast. A very dangerous lost of money for a politician.

The idea of having crypto salaries comes hand in hand with his expectations to create a crypto-friendly legal system. In an interview with FOX Business’ “Varney and Co.” Suarez highlighted Bitcoin’s appeal as a lucrative long-term investment and said he wants to boost the crypto ecosystem.

“We want to be one of the most crypto-forward and technological cities in the country,” he said. “So we’re looking at … creating a regulatory framework that makes us the easiest place in the United States to do business if you’re doing it in cryptocurrencies.”