Need connections in municipal finance and/or banking for venture integrating cryptocurrencies and public finance

[lance.brofman]

Already there is a patent pending "Systems and methods for managing and processing transactions where legal tender status may be established for cryptocurrencies". This would allow cash hungry governments at the national, state, and even local level to obtain income from cryptocurrencies without financial risk. Russia and Turkey have floated the prospect of a national cryptocurrency and Venezuela has actually launched one called the Petro. The price of one Petro is pegged to the price of one barrel of Venezuelan oil. The main purposes of the Petro were to evade sanctions and raise desperately needed cash. The Venezuelan government has already defaulted on debt so trusting Venezuela to honor its promise with regard to the Petro would seem no less risky than trusting it to pay interest on its bonds.

The challenge all cryptocurrencies face is attracting miners who use the crypto of choice for transactions, as a store of value, or as a speculative instrument. There is a need for each crypto to devise some feature that allows for a market share gain over others. It is presently unlikely that a crypto directly issued by a government or a central bank would receive immediate wide acceptance since the major original attraction of cryptos was that they were independent from governments or central banks. However, a crypto that had some element of legal tender status would clearly have a competitive advantage over its competitors.

We think the eventual replacement of paper money with a digital crypto could involve municipalities issuing what might be described as a put warrant. This is a security that gives the holder the right (but not the obligation) to sell a given quantity of an underlying asset for an agreed upon price on or before a specified date. A typical put warrant issued via blockchain methodology by a municipality would allow the holder to use specific cryptos to satisfy obligations to the government at a specified exchange rate, which is the strike price..."
https://seekingalpha.com/article/4178411