Cryptocurrencies
City of Berkeley Looks to Cryptocurrency to Raise Funds
- California city is mulling applying blockchain to public debt
- Investors could buy either a digital coin or municipal bond
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In what might be a first for the $3.8 trillion municipal bond market, Berkeley, California is mulling a proposal to apply blockchain technology to public finance as a way to raise funds for community projects.
Under the initiative, the city would go to market with a public initial coin offering, allowing investors a chance to purchase either monetized digital tokens or municipal bonds issued in U.S. dollars. Coupon payments would be the same for those buying the bonds as those investors who want the digital currency instead.