The City of Berkeley in California, is considering launching its own cryptocurrency to raise funding for vital city projects like affordable housing and support services for the city's growing homeless population, Business Insider reported.
Burkley could launch an ICO, calling an "initial community offering," by mid-May if the necessary approvals come through.
According to Berkeley City Council Member Ben Bartlett, the creation of the city's own financing mechanism is a key part of building resilience in the Trump era.
"Berkeley is the center of the resistance, and for the resistance to work, it must have a coin," Bartlett told Business Insider.
Bartlett has formed a committee with Berkeley Mayor Jesse Arreguín, financial technology startup Neighborly, and the UC Berkeley Blockchain Lab to hatch a strategy for the ICO.
The idea for an ICO came about after President Donald Trump signed the Republican tax bill , which city leaders say will be punishing for Berkeley.
The new legislation makes sweeping changes to the tax code for businesses, some of which undermine incentives that encourage private contractors to build affordable housing. Berkeley is facing a shortage of affordable places to live, leading to gentrification, rising rents, and homelessness.
"Unlike most of the ICOs which deliver coins for a future value or service, these coins will represent a real security issued for a specific purpose," Neighborly's co-founder and COO Kiran Jain said.
The city counted nearly 1,000 homeless people last year. This represents a 17% increase from 2015 and a 43% increase from 2009, according to city data.