Mayor-president of Louisiana city, Joel Robideaux has urged the local residents of the city to launch their own Initial Coin Offerings (ICO) in an April 12 speech.
Mayor Expresses Faith In ICOs
This virtual currency proposal was by far the biggest reveal in Robideaux’s annual address at the Heymann Center. He painted Lafayette parish as a technological hub, which needs to use this advantage to decentralize the local economy and better the government services.
The entire Lafayette parish is under huge financial stress. In a presentation given by the town in March, it was observed that property tax revenues are not sufficient enough and that the city fund to run finance operations is going bankrupt. Some of the coping mechanisms to battle this ill situation include an increase in tax, removing the parks department and unsolicited annexation of unincorporated land.
However, according to local sources, Robideaux is high on a rather unconventional solution, i.e., create your own cryptocurrency and sell it.
As reported by The Acadiana Advocate, Robideaux said that the parish must launch its own cryptocurrency, allocate it via an ICO, and use the incoming proceeds to “build a living lab of blockchain researchers and developers.”
Cryptocurrencies Not A Tool For The Corrupt
Speaking about the blockchain’s rapid developments in the corporate world, Robideaux added:
“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.”
With regard to concerns that cryptocurrency could be used for money laundering or other deceitful purposes, the Mayor believes that secure digital currency transactions – that are untraceable and unregulated – are not used by “global libertarians.”
The mayor did not shed much light on the question that what function this cryptocurrency would serve other than raising funds. He sees cryptocurrency as a tool to finance public works and allow citizens to participate in the financing, adding that the digital tokens are “an alternative for financing public infrastructure.”
Earlier, U.S. City of Berkeley Joined List Of Blockchain Adopters
In fact, this is not the first time that a municipality has proposed such an idea. The city of Berkeley, California had earlier proposed to create a local cryptocurrency, describing the tokens as “crypto-enabled microbonds.”
The proposal was made in response to U.S. President Donald Trump’s bill that proposed blocking development funds to “sanctuary cities” – a list that includes Berkeley.
Officials of Berkeley teamed up with UC Berkeley’s Blockchain Lab and blockchain startup Neighborly to create an ICO plan, with hopes that the raised funds allow for building affordable homes meant for low-to-middle income groups.
The token would be backed by official government bonds – classifying it as a utility token – thus creating a digitized platform which efficiently raises funds from multiple stakeholders.
By using a public blockchain, the city’s administration cuts out intermediaries and allows for a transparent platform through which all citizens to view bond issuances.