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Miami is the first U.S. city to begin earning revenue from a city-branded cryptocurrency, “MiamiCoin,” and is now the host of the largest national conference on cryptocurrencies, Bitcoin 2022.  Allison+Partners EVP David Baum, who leads the firm’s office in Miami, attended the conference this week. He shares insights on the regulatory landscape around cryptocurrency, how leaders navigate crypto’s environmental impact, and Miami’s journey to becoming the next tech hub.

Read David’s key takeaways below:

Late to the Party but Politicians and Regulators are Finally Getting their Wristbands:

Despite the public perception that the crypto industry is the wild west and has utter disdain for any oversight, there was a strong sentiment at the conference that regulation is the path to widespread adoption. President Biden’s recent executive order that directed federal agencies to consider new regulations and report on digital currencies was notable for highlighting the economic benefits of this emerging sector (a rare nod of approval from the U.S. government). This will spur institutional investors to increase investments and help state officials create local regulatory frameworks.

Adapt or Face Oblivion: Necessity Spurs Energy Innovation:

For years, the criticism from regulators, NGO’s and large swaths of society has been geared toward the vast amounts of energy required for mining bitcoins. Bitcoin’s consensus mechanism (proof-of-work) requires miners to utilize vast amounts of energy (often fossil fuels) to verify transactions. Out of necessity to avoid scrutiny from lawmakers, mining companies have increasingly sought sustainable energy sources, spurring a wave of innovation and new deployments of sustainable energy. While still in the early stages, the industry is shifting towards sustainable energy solutions in the coming years.

Crypto Coast: Miami Flexing its Digital Financial Muscles:

As Communicators, we appreciate the successful development and deployment of a bold narrative, and kudos to the Miami business & tech community, Mayor Suarez, and Mayor Levine for elevating Miami as the new digital financial capital for the 21st century. At the start of the event, organizers unveiled a new “digital bull of wall street” statue, a symbol that Miami is taking aim at New York City as the “Wall Street of the South” powered by crypto technology. Symbols matter and often push a prophecy that eventually becomes self-fulfilling, and if the size of the attendees (over 20,000), quality of the speakers, and acceleration of investments, entrepreneurs, and talent flying in are any indications, Miami will become the epicenter for crypto innovation not just for the United States but for the world.

We have a variety of crypto expertise around the network; If you’re interested in learning more about how we’re approaching this frontier, reach out at hello@stagwellglobal.com.