The city of Berkeley in California has announced that it plans to launch an Initial Coin Offering (ICO) which it hopes will raise enough funds to kick-start the city’s objective of affordable housing.

ICOs are no longer a new concept in the world of cryptocurrency and blockchain but the surprising thing is that they have had ups and downs with the latter mainly being associated with scams. However, they have also proved to be reliable and highly effective methods of raising capital. The city of Berkley has identified the potential of ICOs and thus the decision to launch one in the hope of raising capital that will be used in initiatives aimed at providing better housing. The city not only plans to launch an ICO but also its own cryptocurrency and it also hopes that the move will also encourage other cities to follow the same trend.

“This is not your typical ICO, but rather an initial community offering. We decide to explore new forms of finance in response to the cuts from DC and corporate tax cuts that took away our ability to fund affordable housing,” stated Ben Bartlett, a city council member of Berkeley City.

According to Bartlett, there are more than 1,000 people without homes in Berkeley city and that the number will most likely go up five times fold in the next few years. He pointed out that there needs to be some ideas brought forth that will help in solving the growing problem of homelessness. Many cities are facing the same problem but Berkeley is determined to finally bring the matter to rest through the new initiative.

The city of Berkeley plans to launch the ICO in May this year. It might be the City’ first ICO but it is not the first move that is aimed at tackling the housing problem. PACE financing was Berkeley city’s previous initiative targeting housing about 10 years ago and it looks like the company is exploring new solutions.

The move is particularly important considering that the number of homeless people might be on the rise in the next few years. This is due to the fact that the recent legislation approved by President Donald Trump has some changes to the tax code that discourage private contractors from putting up affordable structures.