The Berkeley authorities in the state of California are announcing the first ICO in America at the municipal level. The administration plans to sell to investors the tokens secured by municipal bonds. In the future, tokens can pay for purchases in stores, food in restaurants and even rental housing. This is reported by Business Insider.
The funds raised through ICO will be invested in the construction of affordable housing and in the social sphere. First and foremost, the city authorities intend to help the homeless, whose number is growing every year.People without a fixed place of residence will receive tokens free of charge and will be able to pay for goods and services in partner companies of the administration.
Berkeley is the center of the resistance, and for the resistance to work, it must have a coin. We have a jobs explosion and a super tight housing crunch. You're looking at a disaster. We thought we'd pull together the experts and find a way to finance [affordable housing] ourselves.
Berkeley City Council Member
The decision to hold the ICO in Berkeley arose after the signing of the law on tax reform. The Trump Administration intends to reduce taxes for legal entities and certain groups of individuals. This initiative can affect private contractors who are engaged in the construction of affordable housing in the United States. According to the estimates of the consulting firm Novogradac & Company, in the next 10 years due to the tax reform the number of available housing will be reduced by 235,000 houses and apartments.
In Berkeley, problems with housing are particularly acute. In 2017, 1000 homeless people were registered in the city, which is 43% more than in 2009.