In a twist of irony, New Yorkers are no longer able to buy or sell a cryptocurrency exclusively created for them. Last November Project developer CityCoins created NYC Coin revealed that the firm drew inspiration after NY Mayor Eric Adams ran a political campaign vowing to transform the city as “the center of the cryptocurrency industry.” Looks like the promise turned futile.
According to sources, the project enabled people to “invest” in New York by mining and buying the tokens and stands to reap profits against any price appreciation. A portion of the tokens created is designated to be deposited in a crypto wallet which is to benefit New York. The coins are powered by the Stacks protocol, which uses so-called smart contracts to tie itself to the Bitcoin network.
However, Adams hasn’t voiced support for the coin as it has no official affiliation with the city.
Here’s why New Yorkers cannot trade the NY branded coin
NY natives can create coins through the mining process, but here’s the catch- they cannot trade them on an exchange because the state requires crypto exchanges to have a BitLicense to operate in the city. None of the crypto exchanges having BitLicense offer the ability to trade in NYC Coin.
New York’s BitLicense has long invited criticisms from the crypto industry since it was implemented back in 2015. As per new filings, crypto entities are forming a lobbying army to influence state-level regulation. Patrick Stanley, a lead community developer for CityCoins, told Bloomberg in an interview.
BitLicense functions as an onerous obstacle that limits innovation. The City of New York is reviewing how they could accept and use the funds, but if there’s a lack of imagination, Miami is the model.
New York City officials didn’t respond about the token. In comparison to that, Miami Mayor Francis Suarez has embraced its MiamiCoin. As many as 4 billion coins have been claimed and almost 12 million STX tokens have accumulated in the city-dedicated wallet.
But the honeymoon period was short-lived. According to Miami Herald, the price of a Miami-branded digital currency plunged to its lowest point since it was launched in August, last year.