“Our blockchain task force is looking into how the @CityofJacksonTN can accept property tax payments in Bitcoin and allow our employees to DCA in Bitcoin” – @MayorConger via Twitter
Troubled Times for the US Dollar
The growing inflation and devaluation of the United States Dollar which has made it a less desirable store of value fueled the move. Bitcoin maxis had an easier time proving the digital currency’s superiority over the dollar when the federal reserves churned out trillions of dollar notes for COVID-19 relief in 2020. It was reported that the federal government printed and injected $9 trillion into the economy last year.
For context, this represents about 22% of all USD ever printed. The brewing rise in inflation forced many institutions to look towards Bitcoin to preserve their funds. Microstrategy and Tesla led the way by adding Bitcoin to their balance sheet. Concerned by the ever-rising inflation rate, Scott Conger intends to toe the path of these tech heavyweights by adopting Bitcoin as a treasury reserve asset.
“Why do we accept inflation? Why don’t we demand more from our federal government? 6.3% in 2 years. 172.8% in my lifetime. Every year our dollar is worthless. There is no rebound. There is only one fix for this. #Bitcoin” – @MayorConger via Twitter
Conger also wants employees of the city to learn and adopt the Dollar Cost Averaging (DCA) Bitcoin investment strategy. The DCA is an investment method where a person invests small amounts in Bitcoin at intervals, usually over a long period, instead of investing at once. The idea of DCA is to help investors reduce the risk of buying the top.
Miami leads the pack
Should Conger’s initiative be realized, Jackson will join the list of United States cities to embrace Bitcoin. In February, Miami mayor Francis Suarez announced that the City of Miami Commission had approved his resolution to adopt Bitcoin. The approval permitted the state to pay a fraction of employees’ salaries in Bitcoin, accept fees and taxes in Bitcoin and add the digital currency to the city’s balance sheet.
“It’s wonderful to be a very crypto forward city. I want to thank my commission colleagues for allowing that to happen,” Suarez said following the approval.
Suarez has openly advocated for Bitcoin before and after the announcement. He attempted to entice embattled Chinese miners who were forced to quit operations in the country after a harsh regulatory clampdown. According to him, the availability of clean and cheap nuclear energy is a selling point that could make Miami a hotspot for mining activities.
“The fact that we have nuclear power means that it’s very inexpensive power. We understand how important this is … miners want to get to a certain kilowatt price per hour. And so we’re working with them on that.” He added.