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New York City’s Eric Adams made a splash by announcing his commitment to building a crypto hub that can rival Miami’s.
His public position quickly conquered his position as Cynthia Lummis on the east coast. Miami has already generated millions of new city revenues due to the success of MiamiCoin. On paper, it’s a low-hanging fruit for a newly elected mayor of a technology-driven city.
There is no question that developing and implementing a CityCoin can help build a crypto culture. It can also provide economic benefits and incentives. It makes the news and creates the buzz. But is that really what drives the decision-makers in the industry?
At the moment there are essentially three groupings of jurisdictions and politicians who rule them. First of all, there are the early adopters and supporters. That group can include the likes of Eric Adams, Francis Suarez, Cynthia Lummis, and Tom Emmer. These people are the visionaries who have the long term potential of Blockchain– Understand technologies.
Then there are the opponents. While the group of adversaries is getting smaller as digital assets continue to grow in importance, they are still represented. Finally, the largest group is those who are either still trying to gauge the public wind or are not fully involved in any direction.
Emerging industries require managers with foresight. Even if the vision isn’t fully realized, the fact that a leader is willing to bet on success is a powerful indicator of how the jurisdiction will regulate and treat the industry. In this way the CityCoin idea is helpful for those who read the tea leaves.
Eric Adams has strengthened his position as a friend of digital assets. While this cultural component is extremely important, the question remains whether a CityCoin is the best use of one’s zeal to get Cryptocurrencies and support blockchain technology. The same question can be asked of those executives who go all-in on mining.
In either case, such leaders typically take advantage of the natural advantages available to them. Jurisdictions that bet on mining operations are typically areas with extremely low energy costs. CityCoins build on the city’s ability to come together and support an initiative. It is an intangible quality that binds the city together.
In this case, it is reminiscent of the “I Love New York” advertisement of the early 2000s. New York and Miami both have that certain pride in their respective cities. It makes sense that they are interested in using this to build a culture around an industry that they believe in.
CityCoins, however, face problems that have not yet been specifically decided. For example, the question arises as to whether they might violate the constitutional provision that prohibits states from issuing legal tender. While we wait for the federal government to develop more detailed regulations on the long-term handling of digital assets, these technical questions will be answered. But how cryptocurrencies are handled is currently a question mark that could affect even the best of plans.
In addition, the question of use arises. In order for such a digital asset to be effective, it must be used for doing business. Early adopters may well be those who expect an increase in value. Will you want to spend your CityCoins? And will the whole system outlast time?
Beyond the early adopters, will cities have problems in attracting new users in the future? These are questions that are directly related to the cultural introduction of the program. Perhaps the strategic vision of Mayors Adams and Suarez will address the question marks. However, it will likely take years to fully understand the extent of success or failure.
In the meantime, they will make headlines, and that will further raise cultural awarenessa positive one indeed. The question, however, is whether there are other alternatives that can create the same cultural benefits with more direct benefits for both cities and industry.
Consider programs that would increase funding for building blockchain incubators that are tied into the university system that could aim to attract students by stimulating interest in starting their own startups and, more generally, the need support to specialists in the industry.
All industries, including these, are demand-oriented. If you can build a skilled workforce who are committed and ready to innovate, that alone will determine your corporate culture, especially at a time when labor shortages are upsetting the most flexible companies.
Additionally, identifying the needs of the industry in its current form provides its own path into the future. Remember that the success of digital assets is inextricably linked to the success of digital asset custodians. The industry has not fully realized that the role of the custodian is far more onerous than the same role in the realm of traditional assets. As the industry continues to develop in the months and years to come, there will always be unmet requirements. Meeting these requirements could result in the creation of a pro-crypto culture that immediately leads to new high paying jobs that will stand the test of time.
Richard Gardner is CEO of Modulus, an international financial technology company, and has been a globally recognized subject matter expert for more than two decades, providing complex insights and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies, and general management best practices.
Selected image: Shutterstock / Blindnesssinfluenced / REDPIXEL.PL
The Post CityCoins can help develop cryptoculture – but is it the best political initiative? first appeared on The Daily Hodl.
Source: Crypto News Deutsch