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The Mayor of Lafayette, Louisiana, proposed to the city to create its own cryptocurrency to raise funds for public finances. from Berkeley, California, according to the Acadia Advocate. These blockchain-based municipal loans, if they were to materialize, could revolutionize local financing in the United States and elsewhere.
Joel Robideaux, Lafayette's mayor-president, made the proposal during his annual speech at the Heymann Center, describing his city as a technology hub that will diversify the local economy and improve government services. The city is currently in a difficult economic situation and additional tax projects are underway.
Alternative public financing
Robideaux, like his Berkeley counterparts, sees cryptocurrency as a means of financing public works and allowing citizens to participate in financing. He called cryptocurrency an alternative for financing public infrastructure.
Robideaux said that he recognized that the field of banking, financial and payment systems had changed forever, and that government, health care and "probably all industries" would soon be disrupted. He rejected the idea that cryptocurrency is promoted by libertarians around the world in search of unregulated and untraceable monetary transactions.
However, unlike Berkeley planners, Robideaux gave no details on how his proposal for the application of cryptocurrency to municipal finance will work, nor how he will motivate investors to support his vision.
Berkeley, on the other hand, plans to support his cryptocurrency with municipal bonds and offer crypto-enabled "microbonds" to support affordable housing and projects for the homeless.
Robideaux seeks a Blockchain laboratory
Robideaux said that an ICO will fund a "living lab" of blockchain developers, but he did not explain what the lab would cost, what it would consist of and where it would be located.
He said that the city needs to diversify its economy to cope with the unemployment that resulted from the 2014 oil crash. It also encouraged citizens to consider artificial intelligence, which is why the city is not the only one. machine learning and augmented reality applications to local government, technologies that could improve stormwater management, real-time traffic lights, and more transparent local government.
Robideaux said that the cultural economy of the city already exists and that it will become the stabilizing force of its budget.
Meanwhile, the budget remains in crisis while the general fund has been decimated.
See also: Berkeley ICO: Can a city solve housing shortages and avoid Trump through blockchain?
Berkeley draws a new territory
While the Berkeley cryptocurrency project is still in the development phase, Berkeley advisers have teamed up with Mayor Jesse Arreguin with a technology start-up called Neighborly – with software support from the UC Blockchain Berkeley Laboratory – to develop the technology. The goal is to offer an ICO that would promote transactions in the region.
The plan allows Berkeley to build on blockchain to provide its citizens with clean human habitation homes, which are affordable and accessible, on the basis of a UC Berkeley Bonds Project. / City, which could create a low to medium economic boost in the region.
Moving the municipal bond market to a digital platform will create a more efficient process than the multi-stakeholder paper process, said Berkeley councilor Ben Bartlett at Citylab. The city can create a public register that presents the financial statements and removes the intermediary, which reduces the transaction costs normally associated with bond issues.
Berkeley's cryptocurrency is not a speculative tool, Bartlett said. It's a special vehicle with the key distinction that it's backed by a real asset.
Image from Shutterstock to photo
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