The city of Roswell, New Mexico, has become the first city in the USA to create its own strategic reserve in the first cryptocurrency to support socially vulnerable groups and mitigate the effects of natural disasters.
The decision to create a municipal reserve in bitcoins was signed by the acting mayor and city council representative Julianne Halvorson, as well as certified bitcoin specialist Guy Malone.
According to the provision for the creation of a strategic reserve in bitcoins, the city administration will use the assets to support socially vulnerable groups. After reaching a minimum accumulation amount of $1 million, the fund's assets may be used to mitigate the effects of natural disasters.
The Roswell administration noted that the management of the city's reserve in bitcoins will be decentralized. The 24 words of the seed phrase necessary to access the wallet are distributed among 24 trusted individuals, including city council members, the mayor, the sheriff, business representatives, and media, which should minimize the risks of theft and unauthorized access to the fund's assets.
The reserve cryptocurrency fund will accept bitcoins as voluntary donations. Donors who contribute more than $250 to the account will be eligible for tax deductions. The Roswell crypto fund has already received its first donations totaling approximately 0.03050 BTC ($3000).
