In Brief:
- Roswell, New Mexico becomes the first city to set up a Bitcoin reserve
- The fund will be held for at least ten years to accumulate Bitcoin donations and sponsorships
- The platform has already received over $2,900 worth of BTC in donations
Roswell, New Mexico has become the first city in the United States to establish a strategic Bitcoin reserve. The announcement reached the public domain earlier on Wednesday as the city government disclosed its first Bitcoin donation.
Market reacts to Roswell’s novel crypto move
The historic move marks a significant shift in the nation’s municipal financial strategy as cryptocurrencies become legitimate assets for public reserves. States like Arizona and New Hampshire are already in the process of passing bills into law that will allow them to hold strategic crypto reserves. However, Roswell’s lead could prove handy in hastening legislative approvals for the emerging asset class nationwide.
The announcement triggered an instant market reaction, as BTC price reportedly surged by 3.2% within the first hour of the announcement. The asset moved from $62,450 to $64,450 within that period, per Coinmarket data.
Meanwhile, Glassnode reported a 25% increase in on-chain data in wallet activations within two hours of the story. Chances are higher that the event significantly triggered new market entrants and reactivated investors in the global digital asset sector.
Roswell receives first BTC donation to strategic reserve
Meanwhile, the city of Roswell, New Mexico, has also announced that it has received its first Bitcoin donation of 0.0305 BTC, which is approximately $2,900 as of the report. The donation was used as “seed money” for launching the government-managed “Roswell Strategic (Bitcoin) Reserve.”
According to the official document, the fund will be held for at least ten years, accumulating BTc sponsorships and donations. Upon reaching the $1 million threshold, the fund could serve as a “Bitcoin emergency fund,” and 21% can be used every five years, depending on a unanimous approval by the City Council.
Julian Halvorson, the acting mayor of Roswell, and Guy Malone, a Bitcoin expert, received the donation. The donating address is also in the public domain.