As Bitcoin continues its historic bull rally, breaking all-time price records, Miami Mayor Francis Suarez has said that he is “open to exploring” by putting a percentage of Miami’s treasury reserves in Bitcoin.
This topic of conversation was started on Twitter by Anthony Pompliano. The co-founder of blockchain-based investment firm Morgan Creek Digital Assets tweeted:
“Retweet this if you move to Miami if Mayor Francis Suarez puts 1% of the city’s treasury reserves in Bitcoin.”
Pompliano received a prompt response from Mayor Suárez, who responded on Twitter:
A consideration of this magnitude by a mayor of a major US city is a massive step in the widespread adoption of Bitcoin.
A future milestone for Bitcoin
If Mayor Suarez actually decides to invest a portion of Miami’s treasury reserve in Bitcoin, it would be the first city in the US to own an allocation in its reserves.
According to the Miami Herald, as of April 2020, Miami had reserves amounting to approximately $ 95 million, meaning that just a 1% allocation would represent nearly $ 1 million.
This would be a very small investment for the city’s treasury, but it would represent a massive milestone in terms of what Bitcoin looks like. If the treasury of one of the largest cities in the United States invests in Bitcoin, it could begin to set a standard.
A trend that has already started
So far in 2020, we have seen many different companies, both public and private, invest some of their cash reserves in Bitcoin.
The largest and most outspoken investment comes from MicroStrategy, a business intelligence firm that has invested more than $ 1.3 billion of its cash reserves in Bitcoin. MicroStrategy CEO Michael Saylor also personally owns $ 100 million in Bitcoin as a vocal advocate for cryptocurrency as a hedge against inflation.
With continuing global economic uncertainty in addition to massive levels of inflation for fiat currencies like those faced by the US dollar, many companies and organizations have started turning to Bitcoin as a possible remedy.
It’s hard to say if this Twitter-friendly proposal will ever come to fruition, but the idea, even being discussed by government officials, is an extremely positive sign for Bitcoin.
