Published: 08.04.2022
Article reading time:
2 minutes.
The authorities of the American city of Philadelphia will not use PhillyCoin as part of the CityCoins charity project due to the risk of illegal transactions.
In February, Philadelphia Mayor Jim Kenney announced his readiness to become a member of the CityCoins project to develop his own “city coin”. The challenge was to enable municipalities to use crypto assets to fund their own programs. However, the administration of Philadelphia refused to implement PhillyCoin, as it does not imagine options for its use. Local authorities fear that the owners of PhillyCoin will be untraceable, and they will be able to use this digital asset to carry out illegal transactions.
CityCoins public relations manager Logan Storrer said he did not blame the city administration for the decision. Her actions are quite understandable – first you need to clarify the situation with the regulation of cryptocurrencies in the country.
According to Storrer, PhillyCoin can be compared to MiamiCoin introduced last year. The administration of Miami has the opportunity at any time to request funds listed as a percentage of the production of this crypto asset.
In other words, CityCoins acts as an intermediary between local governments and cryptocurrencies, as municipalities are not allowed to own any cryptocurrencies on their own.
Miami Mayor Francis Suarez has long been known as a supporter of bitcoin. Last year, he said he was ready to become the first American politician to receive his entire salary in bitcoin. And recently he proposed to elect a cryptocurrency enthusiast as President of the United States, joking that he could nominate himself for this post.
Source: Bits
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