In the past several years, cryptocurrency has evolved from being a myth-like phenomenon to a household conversation topic. Although crypto is decentralized, an entire industry has developed around it. While it would be only natural to assume that the crypto industry would have physical roots in the tech hub of San Francisco or the financial epicenter of New York City, cryptocurrency has taken up residency in an unexpected place: Miami.
Let’s break down a few of the many reasons why cryptocurrency lives in Miami.
The Pandemic
In 2020, many people made the decision to leave expensive city hubs in favor of living more affordably in desirable remote locations. Between April 2020 and April 2021, over 300,000 Americans relocated to Florida, with South Florida as a particularly popular landing spot. While the climate, beaches, comparatively low cost of living and cultural vibrance of Miami are certainly all attractive, there’s one aspect that has bigger draw than all three combined: low taxes.
Tax Laws
Compared to other states, Florida has an incredibly low corporate income tax rate — just 5.5%. While many individuals choose to relocate to Miami because the city charges no personal income taxes, property taxes, or sales taxes, it’s the corporate tax incentives that have the most competitive draw for companies. In the past two years, Miami has seen a rise of $1 trillion in new assets. This is largely thanks to the countless startups and “scaleups” that said goodbye to an overpriced and overcrowded Silicon Valley and made Miami their home instead. What did they bring with them? Billions in venture capital investment dollars.
Mayor Francis Suarez
On December 4, 2020, a software engineer in the Bay Area published a tweet suggesting the tech industry should move from Silicon Valley to Miami. Mayor Suarez responded: “How can I help?”
These tweets represent a tech migration which was already happening in Miami in 2020. Mayor Suarez then announced last year not only that the city would accept tax payments in cryptocurrency, but that he would begin taking his paychecks in cryptocurrency, and giving city employees the option to do the same.
Furthermore, the Mayor partnered with crypto nonprofit Citycoins to create MiamiCoin, a community generated cryptocurrency that earns the city 30% of all coin that is produced. The city has already reaped $5.25 million from MiamiCoin, money that Suarez intends to use to fund public programs that address poverty and other societal issues, and lowering existing taxes. Through MiamiCoin, Mayor Suarez is encouraging the people of Miami to invest in crypto, while also offering them something valuable in return.
These three factors combine to create a compelling argument for Miami as a growing tech hub, and possibly the future epicenter of the tech industry. Octonano is committed to staying at the forefront of tech and finance trends, which is why our team is currently on the ground at Miami Tech Month for NFT Week and Bitcoin Conference 2022! Follow along to discover all of the exciting events and news that Miami Tech Month has to offer!