“INITIAL COMMUNITY OFFERING”
The city of Berkeley aims to become the first US city to have its own cryptocurrency ecosystem, in which coins or tokens backed by municipal bonds may be used as legal tender in shops and restaurants, to pay rent, or as donations to the city’s ever-growing homeless population. Additionally, money raised by the cryptocurrency will help create more affordable housing.
Berkeley City Council Member Ben Bartlett is one individual spearheading the charge, telling Business Insider:
Berkeley is the center of the resistance, and for the resistance to work, it must have a coin.
Bartlett is not alone. His powerful teammates include Berkeley Mayor Jesse Arreguín, the financial technology startup Neighborly, and the UC Berkeley Blockchain Lab. Together, they hope to launch their own Initial Coin Offering (ICO), which they are dubbing an “Initial Community Offering.”
Berkeley’s proposed cryptocurrency would essentially utilize blockchain technology as a means of selling municipal bonds. Traditionally, bonds aren’t the most attractive investment opportunity available, but Berkeley hopes the rising popularity of cryptocurrency will attract community-oriented investors worried about the city’s socioeconomic issues. Neighborly’s co-founder and COO Kiran Jain explains to Business Insider:
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.
However, a lot of work is still to be done before a real Berkeley-backed cryptocurrency hits the blockchain, especially given the shaky-at-best reputation of ICOs at the moment. If successful, however, Berkeley’s venture could help legitimize both ICOs and cryptocurrency as a whole.
What do you think about Berkeley’s goals of creating their own cryptocurrency? ?
Do you think other cities could potentially combat homelessness by launching “Initial Community Offerings?” Let us know in the comments below!
http://bitcoinist.com/berkeley-hopes-to-tackle-homelessness-with-its-own-cryptocurrency/
