California City's Blockchain Token Is Definitely Maybe Happening

In a unanimous vote Tuesday, the city council of Berkeley, Calif., took a step towards approving the issue of a blockchain-based "Microbond."

According to Berkeley's city clerk, the council decided to "Refer to the 2018 prioritization process to direct the City Manager to produce a report outlining steps required if the City were to implement a Pilot Project for the Community Microbond Initiative within 90 days."

Another member of the city council, Susan Wengraf, cautioned that "This action does not imply approval at this time."

According to a council member who preferred not to be named, the proposal is moving at a rapid clip through the "Byzantine labyrinth" of city government.

His pitch for low-denomination bonds, tokenized on a distributed ledger, found fertile ground.

"Blockchain allows us to really disintermediate that process and make bonds more affordable for communities and for people."

Among the projects he thinks Berkeley could fund using the bonds are a homeless shelter, an ambulance or an individual fire truck - "Hyperlocal activities," in other words.

He declined to discuss what network the bonds would be issued on - a freestanding blockchain, Hyperledger, bitcoin, ethereum - or even whether the blockchain would be open or permissioned.

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