https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
Banking Technology
  • NEWSLETTER
  • Home
  • Expert Insights
    • Back
    • Expert Insights
    • Commentaries
    • Smart Cities Council
    • Co-op Solutions
  • News
  • In-Depth
  • Multimedia
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • American City & County Awards
    • Events
    • Municipal Cost Index – Archive
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Home
  • Co-op Solutions
  • Expert Insights
    • Back
    • Commentaries
    • Smart Cities Council
  • News
  • In-Depth
  • Multimedia
  • Resources
    • Back
    • Webinars
    • White Papers
    • American City & County Awards
    • Events
    • Municipal Cost Index
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to AC&C
    • Manage AC&C Subscription
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Economy


Article

California city considers starting its own cryptocurrency

California city considers starting its own cryptocurrency

A California city is mulling over joining the cryptocurrency wave to explore a new method for funding public projects.
  • Written by Jason Axelrod
  • 9th February 2018

A California city is mulling over joining the cryptocurrency wave to explore a new method for funding public projects.

Berkeley, Calif., officials announced a partnership with Neighborly, a San Francisco technology firm, and the University of California, Berkeley’s Blockchain Lab to study the potential for the city to release an initial coin offering (ICO), PCMag reports.

ICOs have become popular investments over the past two years, with cryptocurrencies like Bitcoin and Ethereum securing frequent appearances in news headlines across the world. However, no local government has yet explored the idea of presenting an ICO itself. 

"We have to embrace the spirit of innovation if we are going to turn a corner on all these pressing problems like the water shortage, the housing shortage," Berkeley City Council Member Ben Bartlett told PCMag.

The initiative would see Berkeley releasing a public ICO, with investors having the option of buying digital tokens or municipal bonds in U.S. dollars, Bloomberg reports. 

"Unlike most of the ICOs, which deliver coins for a future value or service, these coins will represent a real security issued for a specific purpose," Kiran Jain, Neighborly co-founder and COO, told Business Insider.

The city is still in the preliminary phase of the project, having to determine if voter approval is needed to borrow money, according to Bloomberg. Officials are also determining which projects the ICO would fund — in addition to the water crisis and housing shortage, Bartlett has floated the idea of using its cryptocurrency to address its homelessness issue, according to PCMag. 

"We are hoping to create a new funding resource in the face of federal retrenchment," Bartlett told PCMag. "We have over 1,000 homeless people and we are not going to accept an inability to house them."

The effects that the December tax bill could have on affordable housing funding coupled with Berkeley’s housing and homelessness dilemmas was what initially inspired the idea for a public cryptocurrency, Business Insider reports. As Berkeley is a sanctuary city — a city known to protect undocumented immigrants — it could receive less federal funding due to President Trump’s expressed disdain for such cities.

Berkeley’s partner Neighborly has applied crowdfunding techniques to the municipal bond market, PCMag reports. Berkeley’s cryptocurrency would be backed by municipal bonds, such that the city would be using the cryptocurrency technology of blockchain to sell bonds, Business Insider reports.

"If we can deliver on our mission, this will be a very attractive alternative for other cities and states and counties," John Crossman, principal at Neighborly Securities, Neighborly’s underwriting division, told Bloomberg.

 

_____________

To get connected and stay up-to-date with similar content from American City & County:
Like us on Facebook

Follow us on Twitter
Watch us on YouTube

Tags: Economy News Article

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

White Papers


Preserve Your Pavement: A Road Map to Data-Driven Budgeting

22nd February 2019

What is Your Plan for Cybersecurity?

5th February 2019

5 Best Practices for Utilizing GIS Data

5th February 2019
view all

Events


Twitter


AmerCityCounty

A new #report ranks the 52 American #metropolitan areas with over 1 million residents based on their… twitter.com/i/web/status/1…

14th February 2019
AmerCityCounty

Today, we announced the six winners of American #City & #County's 2018 Crown Communities awards! Congratulations to… twitter.com/i/web/status/1…

12th February 2019
AmerCityCounty

The @CityOfNOLA #CityCouncil is calling for the @NFL to review its rules after the @Saints lost the… twitter.com/i/web/status/1…

29th January 2019
AmerCityCounty

Is your #city among #UHaul's top 25 #GrowthCities for 2018? buff.ly/2S8hptr https://t.co/rI4x0Lcdql

25th January 2019
AmerCityCounty

The personal information for approximately 1,470 #Knoxville, Tenn. #government employees was inadvertently posted o… twitter.com/i/web/status/1…

25th January 2019
AmerCityCounty

““Seconded” staffers, or temporary #procurement professionals at #DallasAreaRapidTransit handle varying heavy workl… twitter.com/i/web/status/1…

23rd January 2019
AmerCityCounty

As the longest #GovernmentShutdown in U.S. history continues with no sign of abating, city governments are stepping… twitter.com/i/web/status/1…

15th January 2019
AmerCityCounty

Florida Governor @RonDeSantisFL formally suspended #BrowardCounty, Fla. Sheriff Scott Israel on Jan. 11, following… twitter.com/i/web/status/1…

15th January 2019

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Expert Insights

Learn from experts in the public and private sectors about best practices and how to optimize your government’s operations.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital and print audiences? Learn more here.

American City and County

© American City and County 2019. All rights reserved.

  • About Us
  • Contact Us
  • Cookies Policy
  • Privacy Statement
  • Terms of Service

Related Links

  • IWCE’s Urgent Communications
  • IWCE Expo

Follow us

Websites are now required by law to gain your consent before applying cookies. We use cookies to improve your browsing experience. Parts of the website may not work as expected without them. By closing or ignoring this message, you are consenting to our use of cookies.
X