Will Miami Invest 1% of their Treasury in Bitcoin?
Following Russell Okung's decision to receive half of his $13 million salary pay in BTC, Francis Suarez, the Mayor of Miami, has said he is open to exploring the idea of them investing one percent of their treasury in Bitcoin. It follows Anthony Pompliano's tweet asking his huge following whether they could move to Miami if the city does invest part of their treasury in digital gold.
Presently, in the United States, some states--like Ohio, allow individuals and businesses to pay their taxes in BTC via a third-party, BitGo, for example. According to the United States SEC, Bitcoin is a utility. On the other hand, the CFTC says Bitcoin is a commodity whose capital gains are taxable. However, there has been no news of any state or agency investing part of their treasury reserves outside of the greenback, especially to cryptocurrencies. While it would be historic for Miami to follow the likes of MassMutual or MicroStrategy, it is highly unlikely. Still, it is a step in the right direction even if the mayor's comments were in jest.
Impact on BTC Price:
Neutral. Unless this comes through, Bitcoin prices will find support from other factors like the recent announcement that Greenpro Capital will invest $100 million in 2021, and the entry of even more public companies. Suarez’s comments are nonetheless bullish, pointing at Bitcoin’s significance in recent months.