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

Innovative cities crossed America are racing to go the adjacent blistery spot for cryptocurrency and blockchain adoption. Miami was the archetypal metropolis to follow its ain portion of CityCoins past year, allowing it to implement its ain cryptocurrency called “MiamiCoin” to beryllium utilized for civic engagement. 

New York City has besides made a sanction for itself arsenic a crypto-friendly metropolis by implementing acquisition initiatives and with Mayor Eric Adams receiving his paycheck successful Bitcoin (BTC) successful January this year. 

Austin takes a beardown stance 

Most recently, Austin — the authorities superior of Texas that goes by the slogan “Keep Austin Weird” — has taken a beardown involvement successful cryptocurrency and blockchain technology. While Texas’ tendency to pb the mode for crypto innovation was established astir a twelvemonth agone erstwhile Governor Greg Abbot tweeted that helium is simply a “crypto instrumentality connection supporter,” the metropolis of Austin has taken further measures to ensure the acceptance of cryptocurrency for metropolis services.

— Greg Abbott (@GregAbbott_TX) March 29, 2021

On March 9, 2022, Austin metropolis assembly subordinate Mackenzie Kelly enactment distant a solution to nonstop the Austin metropolis manager to explore imaginable usage cases of cryptocurrency to payment Austin and its residents. The solution specifically asks for the metropolis manager to examine however the metropolis could follow Bitcoin and different cryptocurrencies for fiscal transactions.

Kelly told Cointelegraph that her solution directs the metropolis manager to behaviour a fact-finding survey to find what would beryllium required for the metropolis to judge Bitcoin oregon different cryptocurrency payments for metropolis services:

“This is much of a feasibility study. We presently don’t person capable accusation arsenic assembly members to cognize if we tin judge crypto arsenic outgo for metropolis services. We request to cognize much astir this earlier we tin decide. In doing so, determination is information accusation we request to look astatine to spot if this is adjacent viable oregon if we tin support crypto connected our books financially. We don’t cognize if we tin measure it arsenic an plus — that would forestall america from being capable to judge crypto arsenic payment. There’s besides the fiscal stableness of crypto arsenic a whole, and if we tin adjacent judge it successful that regard.”

Image from Austin metropolis assembly gathering connected March 24, 2022.  Source: Austintexas.gov

Although questions remain, Kelly mentioned that Austin has ever been a forward-thinking and innovative city, noting that galore cryptocurrency investors presently unrecorded and enactment successful Austin. Kelly added that Austin Mayor Steve Adler is simply a co-sponsor of her resolution. Given this support, Kelly believes cryptocurrency payments volition service arsenic a utile alternate to let individuals the flexibility of paying for definite metropolis services. She elaborated:

“If idiosyncratic gets a speeding ticket, for example, and doesn’t person a slope relationship but has cryptocurrency, they could usage crypto arsenic payment. Or, if they wanted to wage their taxes oregon electrical bills utilizing Bitcoin oregon dedicate a parkland successful their sanction utilizing crypto. This is each portion of the investigation for allowing the metropolis of Austin to judge crypto payments.”

This could surely marque a immense impact, arsenic caller information from Finder.com found that 8% of Texans already ain Bitcoin and that adoption successful the authorities could deed 14% by the extremity of the year. Austin, successful particular, could payment from crypto payments for metropolis services, arsenic Google data shows that Austin ranks astatine the fig 1 metropolis successful Texas that searches for the keywords “Bitcoin” and “crypto.”

All things considered, it shouldn’t travel arsenic a astonishment that Kelly’s solution was approved during Austin’s metropolis assembly gathering that took spot connected March 24. Now that the solution has passed, Kelly explained that the adjacent measurement for support volition hap successful mid-June erstwhile the Austin metropolis manager tin find if crypto tin so beryllium accepted arsenic payment. This volition beryllium based connected the city’s probe regarding fiscal stability, security, equity and inclusion and user benefits oregon risks.

In summation to Kelly’s resolution, Adler’s solution focusing connected blockchain exertion was besides passed during Austin’s March 24, 2022 moving session. During the meeting, metropolis assembly subordinate Sabino Renteria explained that Austin started exploring the usage of blockchain 4 years agone to ensure that the city’s stateless colonisation would person power of their idiosyncratic records astatine each times. “The conception was what if we usage blockchain exertion to beryllium capable to springiness folks ownership and entree to each of their records,” helium remarked. Renteria added that helium is “excited astatine the imaginable of what blockchain tin do.”

While some resolutions are innovative, immoderate Austin metropolis assembly members expressed concerns during the meeting. Councilmember Leslie Pool mentioned that her azygous biggest interest regarding blockchain implementation is its “lack of a cardinal authority.” She added:

“It whitethorn beryllium tamper evident and tamper resistant, but that is each that it is. It’s a integer ledger. So determination whitethorn beryllium immoderate unsocial uses for this oregon for the metropolis to beforehand its use, but astatine this point, fixed its comparatively caller introduction into information retention oregon different integer arenas, I’m truly cautious relating to the metropolis diving into adopting oregon utilizing it. I precise overmuch privation to perceive from our fiscal bureau unit oregon experts connected these technologies earlier taking decisions to follow these items.”

Regarding the cryptocurrency solution enactment forth, assembly subordinate Pool added:

“I proceed to judge crypto is excessively volatile, a signifier of currency to hazard taxation payer dollars oregon worker retirements. Crypto is unregulated. It's not conscionable unregulated. It's besides unprotected. There's an constituent for maine of gaming progressive here. THat leaves maine truly uneasy. Crypto arsenic a signifier of outgo oregon concern is inconsistent with the relation of a municipality successful safeguarding the community’s revenue.”

Austin pushes forward, contempt concerns

Concerns aside, Austin residents stay affirmative regarding cryptocurrency and blockchain innovation wrong the city. For example, Jesse Paterson, seat of the acquisition committee astatine ATX DAO — a chain-agnostic decentralized autonomous enactment (DAO) successful Austin — told Cointelegraph that the enactment aims to service arsenic a section assets to assistance educated metropolis assembly members and residents connected the implications of the precocious passed resolutions:

“Some ATX DAO members were astatine metropolis hallway showing our enactment for the resolutions, yet we inactive lent immoderate caution due to the fact that we are inactive successful the aboriginal days of crypto. Therefore, it takes clip to recognize the abstraction earlier diving into projects.”— ATX DAO (@ATXDAO) March 24, 2022

Ryan Harvey, ATX DAO assemblage manager and long-time nonmigratory of Austin, added that, based connected the wording of some assembly subordinate Kelly’s crypto solution and Mayor Adler’s blockchain resolution, it’s wide that these are inactive fact-finding missions. However, helium noted this is simply a affirmative measurement successful the close direction:

“New accusation is ever a bully thing. But, adjacent beyond fact-finding, some resolutions amusement that Austin is unfastened for concern and encourages innovation, which is fantastic.”

During the March 24 assembly meeting, Harvey took a fewer minutes to stock his thoughts with metropolis assembly members. He stated that, “There are organizations present successful municipality similar ATX DAO — and I was excited to spot DAOs mentioned successful the solution — that tin beryllium a constituent of reference.”

ATX DAO assemblage manager, Ryan Harvey commenting astatine the March 24 metropolis assembly meeting. Source: Austintexas.gov

In summation to efforts being made by ATX DAO, different Austinites are creating initiatives with crypto and Web3 elements to springiness backmost to the community. For example, City Magic is simply a task aiming to bring communities successful Austin unneurotic done grants successful the signifier of nonfungible tokens (NFTs). 

City Magic laminitis Raffi Sapire told Cointelegraph that the task awards $1,000 grants to those successful the Austin assemblage who privation to make a affable abstraction oregon lawsuit for neighbors oregon for civic engagement. “City Magic is for civically-minded radical and for those who attraction astir the community. It besides helps physique a span for radical who whitethorn not person interacted with tokens before. Grants are NFTs, and the outgo to articulation our committee is adjacent to 1 assistance that volition payment civic engagement.”

Adler precocious demonstrated his enactment for Sapire and different blockchain-focused Austin entrepreneurs and businesses successful a tweet that read, “Austin is excited to enactment the businesses and innovations that volition crook the promises of Web3, cryptocurrency, and blockchain exertion into reality.”

Moreover, Austin whitethorn soon articulation the ranks of Miami and New York City by implementing its ain CityCoin. A CityCoin assemblage subordinate spoke astir however this whitethorn play retired successful a presumption conducted astatine ETH Austin, a two-day agelong lawsuit that took spot during South By Southwest. The assemblage subordinate shared that CityCoins’ main extremity is to enactment with the metropolis of Austin to assistance officials similar Mayor Adler and assembly subordinate Kelly amended recognize however Austin’s ain cryptocurrency tin beryllium successful. “We request to specify this and marque definite we bash it close earlier we spell astir anything. Ideally, we’d similar to person an announcement connected this during Consensus 2022, acceptable to hap connected June 9.”

CityCoins assemblage subordinate presenting astatine ETH Austin. Photo Credit: Rachel Wolfson

When asked astir a CityCoin being implemented successful Austin, Kelly remarked, “I’m unfastened to the idea, but my fiscal decision of that depends connected my solution passing and knowing that it’s feasible for the metropolis of Austin to judge crypto arsenic a whole.”