In the state of Louisiana, a city Lafayette, might soon prepare for the launch of a government-issued cryptocurrency. A plan to develop a government-issued cryptocurrency has been suggested by their mayor-president of, Joel Robideaux. Mr. Robideaux suggested the launching the cryptocurrency through an initial coin offering (ICO). This proposal was announced by the mayor-president in Lafayette during his annual address at the Heymann Center.
There were many advantages for the city that were listed by Mr. Robideaux in his proposal. These included diversifying the local economy, positioning Lafayette as a technological hub and streamlining the delivery and financing of government services. Mr. Robideaux stated that a state-issued cryptocurrency would facilitate the “develop[ing] solutions targeting government inefficiencies, and, more importantly, alternatives for financing public infrastructure.”
“It’s not just a bunch of global libertarians that want unregulated, untraceable and secure digital currency transactions,” Robideaux emphasized, “It’s the recognition of global stakeholders that the world of banking, finance and payment systems is forever changed, that the world of healthcare, government and possibly every other industry is about to be disrupted.” The development of a state-issued cryptocurrency has been supported by the government of Lafayette.
A saving grace for Lafayette’s economy
Lafayette is in need of some form of an economic boost. In such a scenario Robideaux’s proposal is being viewed as an attempt to inflate the city’s vaults. He also promised to reinvest the profits that will be received from the ICO for the currency to “build a living lab of blockchain researchers and developers.”
However, this is not the first time that a city’s municipal government in the United States has proposed to develop local state-backed cryptocurrency. The city of Berkley had announced that it was intending to launch a cryptocurrency through an ICO in a bid to fund affordable housing projects in February.
Berkeley’s council plans to sell “crypto enabled micro-bonds,” to raise funds, offering investors modest returns that are tax exempt. Berkeley City Council Member, Ben Bartlett, stated: “This is not your typical ICO, but rather an initial community offering. We decide to explore new forms of finance in response to the cuts from DC and corporate tax cuts that took away our ability to fund affordable housing.”