In an attempt to reduce dependence on federal funding, the city of Berkeley, California may launch an initial coin offering. Business Insider has reported that the ICO will garner funds by selling digital coins that will be backed by government municipal bonds.
When it comes to new projects, you can pretty much always count on Government’s to sell municipal bonds to fund them. Berkeley at the moment is hoping that blockchain technology will find wider acceptance by residents who are already investing in bitcoin and other cryptocurrencies. There is also a good chance that investors will be able to use cryptocurrency within the local economy.
One can’t deny that Berkley’s move to use cryptocurrency in the local economy is both driven and ahead of its time. That said, there are a number of businesses which do not accept cryptocurrency yet and some that did have since pulled out. This was mostly due to its rapid fluctuation and transaction fees.
The project is a response to recent tax cuts made by the Trump Administration. The administration has also made many threats to cut off all funding to sanctuary cities, which Berkeley is. Ben Bartlett has stated, “Berkeley is the center of the resistance, and for the resistance to work, it must have a coin.”
The Trump Administration’s threats has seen Ben Bartlett team up with Jesse Arreguin, Berkeley’s mayor, UC Berkeley’s Blockchain Lab and a start-up known as Neighborly to construct the perfect ICO. According to them, the funds they raise will contribute to more affordable housing that will take on any effects of the new tax bill.
The liberal city of Berkeley and the Trump Administration have a long antagonistic history together. Last February, Trump took to Twitter and personally threatened to stop any funding that goes to UC Berkeley after they protested right-wing speaker Milo Yiannopoulos when he was invited to speak.