Berkeley of California to Create State-independent Cryptocurrency

February 9, 2018

Berkeley, California, is about to make ICO and establish a cryptocurrency which would help the city become financially independent from state.

As the project initiators meant it, city authorities are to issue own tokens as full-fledged monetary funds within city limits. Its citizens may use them in shops, restaurants or for rental payments. Coin cost will be backed with authorities-kept municipal bonds.

Major objectives for the cryptocurrency are funds raising for crucial city-owned premises like affordable housing or assistance for homeless. The latter ones are supposed to gain their share of cryptocurrency to pay for goods and services.

To create the future ICO operations program Berkeley City Council Member Ben Bartlett together with Berkeley Mayor Jesse Arreguín addressed fintech-startup Neighborly and Blockchain-lab of Berkeley University. Kiran Jain, a cofounder to Neighborly, has pointed out that token collecting is to start in the middle of May this year given all approvals won.

According to Bartlett, establishing independent financial mechanism is an action of protest against Trump’s tax reform carried out at the end of last December. The law adopted implies limited possibilities for private business in public residential construction. As Novogradac & Company auditing firm estimates, total number of available rental housing may reduce by 235 000 houses within  the next 10 years.

The law stipulations have made the situation worse in Berkeley. The city is lacking accommodation badly which causes steady increase of rental charge and homeless rate. For the last 8 years only the number of houseless people in the city has risen by 43%.

“We have a jobs explosion and a super tight housing crunch. You're looking at a disaster. We thought we'd pull together the experts and find a way to finance [affordable housing] ourselves”, Bartlett noted.

“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”, Jain added.


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