On Wednesday 2nd May 2018, Berkeley, a city in the American State of California has put forward an initiative to make use of blockchain technology to raise funds for different community projects to help the poor and homeless.
The Berkeley City council had unanimously voted in favor of testing a pilot programme to sell the city’s Municipal Bonds through blockchain technology.
This would help Berkeley to improve their financial situation of the city by increasing the community and reducing the minimum bond price.
The proposed project will allow Berkley to use blockchain technology to provide its citizens who are homeless with homes which would be both affordable and accessible to the people. The project would be based on the municipal bonds of Berkeley. The selling of these municipal bonds could create a low-to-middle income economic boost in financial infrastructure of Berkley.
Jesse Arreguin, the mayor of Berkley is teaming up with a technological startup firm called Neighborly. Neighborly is a software engineering firm who is going to be supporting with Berkeley’s UC Blockchain Laboratory. Their aim is to develop the technology to be used in selling the municipal bonds of the city.
The main scheme of Berkley is to offer an ICO which would promote transactions within Berkley itself. This blockchain-based municipal borrowing scheme would be a new and a revolutionary way to create public funding in the world.
Ben Barlett had informed the citizens of Berkley that the pilot project is going to launch “micro-bonds”. These micro-bonds would allow the supplying or distributing of bonds in the price range of $10 to $25. The minimum denomination for a municipal bond in the United States of America is $5,000.
According to the Vice Mayor, Ben Barlett, the citizens can more easily afford to buy a bond worth $10 than $5,000, which would be like being an investor in Berkley’s projects. This would also be a more practical option for an average citizen living in Berkley.
Keenan Neff comments:
“Still don’t know what blockchain is, but its good to see it being used to help fund community projects”
A Twitter user says:
“Power to the people”
The post Berkeley uses Blockchain to improve the city’s funding appeared first on AMBCrypto.