Crypto Cities: Miami
Cities are a breeding ground for technological innovation and digital advancements by offering a space for talent and businesses alike to come together and shape the future of their city. The rapidly evolving, constantly changing urban landscape offers exciting opportunities for digital innovation and new ways of doing things.
But what makes a city a crypto city? And how are crypto cities contributing to digital asset adoption worldwide? In this new series, we’ll be exploring the benefits cryptocurrency adoption can bring to constantly evolving cities in a rapidly changing global economy.
Miami: The Self-Proclaimed American Cryptocurrency Capital
In January 2021, Miami’s Mayor Francis Suarez declared his city the new cryptocurrency hotspot: “The City of Miami believes in #Bitcoin, and I’m working day and night to turn Miami into a hub for crypto innovation” (twitter.com). Shortly after, Miami became the first municipal government to host Satoshi Nakamoto’s Bitcoin whitepaper on an official government site.
The government website states: “The City of Miami is dedicated to becoming a model 21st century city. We think that means embracing and supporting disruptive technologies that challenge the status quo and improve how we interact with one another. Bitcoin, the decentralised financial network that allows individuals worldwide to store and send value to one another without intermediary agents like banks or payment processors, is a technology we believe will transform the world” (miamigov).
The same year, Mayor Suarez launched MiamiCoin, a digital coin that initially generated around $5 million for Miami since its launch. The coin’s purpose is to give citizens the power to support, improve and program their city. Though MiamiCoin has become nearly worthless over the past months, Suarez remains optimistic: even if MiamiCoin were to fail, it would have been a courageous first try and laid the foundation for any city-focused digital assets coming after.
And it gets better: Miami, often called The Magic City, has no state income tax and a low corporate tax rate of just 5.5%. Crypto businesses are seeing the appeal: crypto financial services company blockchain.com left New York City earlier this year and relocated to Miami. Co-founder Peter Smith states: “New York is a great city. But Miami was an easy choice for us. It’s the gateway to Latin America. It’s on the East Coast time zone. And more importantly, it’s probably the most excited city in the world about crypto right now” (npr.org).
Miami also hosts a variety of crypto conferences. Bitcoin 2022, the world’s largest Bitcoin convention, was held in the city last year. By embracing cryptocurrency and thus supporting businesses and entrepreneurs innovating the space, the South Florida city is hoping to attract tech from Silicon Valley and finance from New York. Suarez is convinced: “we need to integrate Bitcoin into every aspect of our society” (fastcompany).
The Miami Migration: From Corporate Tech Cities to Sunshine and the Beach
Blockchain.com is just one company of many to flock to the Sunshine State. Israeli-based exchange eToro also recently opened an office in the city. US managing director Guy Hirsch stated: “The [crypto] conferences, the events, the mayor’s office championing crypto as something the city is focused on — all of that tilted the scale toward Miami”(kaufmanrossin).
Crypto ventures Okcoin, Borderless Capital and BlockTower Capital also opened offices in Miami in 2021. Michael Bucella, a partner at BlockTower Capital, states that industry players want to build a brand in a place that treats businesses like collaborators, not opponents: “Knowing you have support from local leaders to continue to innovate, and not stifle growth, is incredibly important,” he said. “If we’re building our brand in a particular region, we want that region to have the same long-term outlook” (kaufmanrossin).
The Mayor’s motivation and ongoing excitement for cryptocurrencies are often cited as one of the main reasons why businesses are flocking to the city. Suarez has been outspoken about his desire to make Miami a tech hub. During the pandemic, he launched a campaign to bring new financial technology businesses and jobs to the city and establish Miami as a global fintech capital with cryptocurrency innovations at the forefront.
Once a refuge for the bankrupt and unemployed, Miami has evolved into a hub for digital innovation and a paradise of freedom. Author Dave Barry, who moved to Miami in 1983, states: “People are coming to have careers, which is unheard of. This feels like the first time people are coming here not for purely corrupt and self-serving reasons, but to build something” (ft.com).
With its geographically convenient location, business-friendly environment, proximity to Latin American Markets and a crypto-excited Mayor, Miami provides a unique base for new start-ups and established businesses looking to innovate the tech industry. The city embraces digital currency and innovation and it is this exact excitement and support that draws investors and companies to The Magic City.
Why Every City Should be a Crypto City
Suarez’s drive to establish Miami as a crypto city is showing results. New businesses coming to the city mean new job opportunities for citizens. More conferences mean more visitors coming to the city and spending money, which in return supports locals and the city alike. The Mayor took to Twitter to state that 2022, which has been a tumultuous year for the general economy, saw Miami outgrow all other big U.S cities in terms of Venture Capital Investments.
In a 2021 interview with Newsweek, the Mayor stated: “Over just the past year, 48 companies have signed new leases and 63 new-to-market firms have anchored down in Miami, bringing with them more than 7,000 jobs and adding approximately $1 billion in future wages to our local economy” (newsweek). This set of economic and policy decisions that brought innovators to the city has been labelled #MiamiMovement by many.
The excitement, energy and economic transformation Miami has shown in recent years has no doubt had an incredible impact on the city. Who would have thought just a few years back that tech and finance companies would be flocking from hotspots San Francisco and New York to sunny relaxed Miami? And that Miami would be ranked as the top city for job growth and the best city for start-up activity in the past five years? The mayor’s support and innovative outlook on tech and digital assets have transformed the city and brought jobs and opportunities to many.
Suarez is excited about innovators coming to the city and feels strongly about the benefits it will bring to its city: “[The #MiamiMovement] represents long-sought recognition and revolution in entrepreneurship, education, business and governance. New industries continue to be created as we speak. It has been a win for investors and a win for our residents. My job has been to capture that opportunity to ensure a tech-driven, high-value economy for future generations of Miamians”(newsweek).
Miami as a crypto city means opportunities, growth and transformation. The city has become a hub for tech and finance innovations that will define our future globally. We see the #MiamiMovement as the first part of a larger technological and industrial revolution and we are looking forward to seeing other crypto cities establish themselves throughout the world.
Turn on notifications for the next release in this series, where we will cover crypto cities from around the world!
~By Tina~
