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Is Austin the next US crypto hub? Officials approve blockchain resolutions

by Cointelegraph By Rachel Wolfson
March 28, 2022
in Cryptocurrency
Reading Time: 7 mins read
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Progressive cities throughout America are racing to turn out to be the subsequent scorching spot for cryptocurrency and blockchain adoption. Miami was the primary metropolis to undertake its personal a part of CityCoins final 12 months, permitting it to implement its personal cryptocurrency referred to as “MiamiCoin” for use for civic engagement. 

New York Metropolis has additionally made a reputation for itself as a crypto-friendly metropolis by implementing instructional initiatives and with Mayor Eric Adams receiving his paycheck in Bitcoin (BTC) in January this 12 months. 

Austin takes a powerful stance 

Most just lately, Austin — the state capital of Texas that goes by the slogan “Maintain Austin Bizarre” — has taken a powerful curiosity in cryptocurrency and blockchain know-how. Whereas Texas’ need to paved the way for crypto innovation was established a few 12 months in the past when Governor Greg Abbot tweeted that he’s a “crypto legislation proposal supporter,” the town of Austin has taken extra measures to make sure the acceptance of cryptocurrency for metropolis companies.

On March 9, 2022, Austin metropolis council member Mackenzie Kelly put forth a decision to direct the Austin metropolis supervisor to discover attainable use circumstances of cryptocurrency to profit Austin and its residents. The decision particularly asks for the town supervisor to look at how the town may undertake Bitcoin and different cryptocurrencies for monetary transactions.

Kelly advised Cointelegraph that her decision directs the town supervisor to conduct a fact-finding research to find out what can be required for the town to just accept Bitcoin or different cryptocurrency funds for metropolis companies:

“That is extra of a feasibility research. We at present don’t have sufficient info as council members to know if we are able to settle for crypto as fee for metropolis companies. We have to know extra about this earlier than we are able to resolve. In doing so, there may be safety info we have to take a look at to see if that is even viable or if we are able to hold crypto on our books financially. We don’t know if we are able to invoice it as an asset — that may forestall us from with the ability to settle for crypto as fee. There’s additionally the monetary stability of crypto as a complete, and if we are able to even settle for it in that regard.”

Picture from Austin metropolis council assembly on March 24, 2022.  Supply: Austintexas.gov

Though questions stay, Kelly talked about that Austin has at all times been a forward-thinking and modern metropolis, noting that many cryptocurrency traders at present dwell and work in Austin. Kelly added that Austin Mayor Steve Adler is a co-sponsor of her decision. Given this assist, Kelly believes cryptocurrency funds will function a helpful different to permit people the flexibleness of paying for sure metropolis companies. She elaborated:

“If somebody will get a rushing ticket, for instance, and doesn’t have a checking account however has cryptocurrency, they may use crypto as fee. Or, in the event that they needed to pay their taxes or electrical payments utilizing Bitcoin or dedicate a park of their identify utilizing crypto. That is all a part of the evaluation for permitting the town of Austin to just accept crypto funds.”

This might definitely make a huge effect, as current knowledge from Finder.com discovered that 8% of Texans already personal Bitcoin and that adoption within the state may hit 14% by the top of the 12 months. Austin, particularly, may gain advantage from crypto funds for metropolis companies, as Google knowledge exhibits that Austin ranks on the primary metropolis in Texas that searches for the key phrases “Bitcoin” and “crypto.”

All issues thought-about, it shouldn’t come as a shock that Kelly’s decision was accepted throughout Austin’s metropolis council assembly that occurred on March 24. Now that the decision has handed, Kelly defined that the subsequent step for approval will happen in mid-June when the Austin metropolis supervisor can decide if crypto can certainly be accepted as fee. This might be based mostly on the town’s analysis concerning monetary stability, safety, fairness and inclusion and client advantages or dangers.

Along with Kelly’s decision, Adler’s decision specializing in blockchain know-how was additionally handed throughout Austin’s March 24, 2022 working session. In the course of the assembly, metropolis council member Sabino Renteria defined that Austin began exploring the usage of blockchain 4 years in the past to make sure that the town’s homeless inhabitants would have management of their private data always. “The idea was what if we use blockchain know-how to have the ability to give of us possession and entry to all of their data,” he remarked. Renteria added that he’s “excited on the prospect of what blockchain can do.”

Whereas each resolutions are modern, some Austin metropolis council members expressed considerations in the course of the assembly. Councilmember Leslie Pool talked about that her single largest concern concerning blockchain implementation is its “lack of a government.” She added:

“It could be tamper evident and tamper resistant, however that’s all that it’s. It’s a digital ledger. So there could also be some distinctive makes use of for this or for the town to advertise its use, however at this level, given its comparatively current entry into knowledge storage or different digital arenas, I’m actually cautious referring to the town diving into adopting or utilizing it. I very a lot need to hear from our monetary workplace employees or consultants on these applied sciences earlier than taking choices to undertake this stuff.”

Relating to the cryptocurrency decision put forth, council member Pool added:

“I proceed to imagine crypto is just too risky, a type of foreign money to threat tax payer {dollars} or worker retirements. Crypto is unregulated. It isn’t simply unregulated. It is also unprotected. There’s a component for me of gaming concerned right here. THat leaves me actually uneasy. Crypto as a type of fee or funding is inconsistent with the function of a municipality in safeguarding the neighborhood’s income.”

Austin pushes ahead, regardless of considerations

Considerations apart, Austin residents stay optimistic concerning cryptocurrency and blockchain innovation throughout the metropolis. For instance, Jesse Paterson, chair of the schooling committee at ATX DAO — a chain-agnostic decentralized autonomous group (DAO) in Austin — advised Cointelegraph that the group goals to function an area useful resource to assist educated metropolis council members and residents on the implications of the just lately handed resolutions:

“Some ATX DAO members had been at metropolis corridor exhibiting our assist for the resolutions, but we nonetheless lent some warning as a result of we’re nonetheless within the early days of crypto. Subsequently, it takes time to know the house earlier than diving into tasks.”

Ryan Harvey, ATX DAO neighborhood supervisor and long-time resident of Austin, added that, based mostly on the wording of each council member Kelly’s crypto decision and Mayor Adler’s blockchain decision, it’s clear that these are nonetheless fact-finding missions. Nonetheless, he famous this can be a optimistic step in the precise course:

“New info is at all times a very good factor. However, even past fact-finding, each resolutions present that Austin is open for enterprise and encourages innovation, which is implausible.”

In the course of the March 24 council assembly, Harvey took a couple of minutes to share his ideas with metropolis council members. He said that, “There are organizations right here on the town like ATX DAO — and I used to be excited to see DAOs talked about within the decision — that may be some extent of reference.”

ATX DAO neighborhood supervisor, Ryan Harvey commenting on the March 24 metropolis council assembly. Supply: Austintexas.gov

Along with efforts being made by ATX DAO, different Austinites are creating initiatives with crypto and Web3 parts to present again to the neighborhood. For instance, Metropolis Magic is a undertaking aiming to carry communities in Austin collectively by grants within the type of nonfungible tokens (NFTs). 

Metropolis Magic founder Raffi Sapire advised Cointelegraph that the undertaking awards $1,000 grants to these within the Austin neighborhood who need to create a pleasant house or occasion for neighbors or for civic engagement. “Metropolis Magic is for civically-minded folks and for individuals who care concerning the neighborhood. It additionally helps construct a bridge for individuals who might not have interacted with tokens earlier than. Grants are NFTs, and the price to affix our committee is the same as one grant that can profit civic engagement.”

Adler just lately demonstrated his assist for Sapire and different blockchain-focused Austin entrepreneurs and companies in a tweet that learn, “Austin is worked up to assist the companies and improvements that can flip the guarantees of Web3, cryptocurrency, and blockchain know-how into actuality.”

Furthermore, Austin might quickly be part of the ranks of Miami and New York Metropolis by implementing its personal CityCoin. A CityCoin neighborhood member spoke about how this will likely play out in a presentation performed at ETH Austin, a two-day lengthy occasion that occurred throughout South By Southwest. The neighborhood member shared that CityCoins’ primary objective is to work with the town of Austin to assist officers like Mayor Adler and council member Kelly higher perceive how Austin’s personal cryptocurrency might be profitable. “We have to outline this and ensure we do it proper earlier than we go about something. Ideally, we’d wish to have an announcement on this throughout Consensus 2022, set to occur on June 9.”

CityCoins neighborhood member presenting at ETH Austin. Photograph Credit score: Rachel Wolfson

When requested a few CityCoin being carried out in Austin, Kelly remarked, “I’m open to the concept, however my monetary conclusion of that is determined by my decision passing and figuring out that it’s possible for the town of Austin to just accept crypto as a complete.”