Roswell, New Mexico Launches Strategic Bitcoin Reserve

Key Takeaways:

• Roswell establishes the first municipal Bitcoin reserve in the U.S.
• Initial donation of 0.0305 BTC ($2,900) kick-starts the fund.
• BTC holdings are locked for a minimum of 10 years, with strict drawdown rules.
• Reserve proceeds earmarked for senior water-bill subsidies and emergency relief.
• Pioneering model may inspire other U.S. cities to diversify treasuries with crypto.

A Landmark Move for Municipal Finance

In April 2025, Roswell’s City Council officially recognized its first Bitcoin gift—3,050,323 satoshis (≈0.0305 BTC, valued at roughly $2,906 upon donation)—as the seed for a Strategic Bitcoin Reserve Fund. This vote makes Roswell the very first U.S. city to hold cryptocurrency explicitly as a treasury asset, exploring Bitcoin’s potential as a long-term hedge and revenue source.

Reserve Fund Structure and Governance

Roswell’s ordinance outlines robust guardrails for this novel reserve:

• Ten-Year Lockup: All donated and future BTC contributions remain off-limits for at least a decade.
• $1 Million Milestone: Only once the fund surpasses $1 million in market value can spending be considered.
• Controlled Drawdowns: Up to 21% of the fund may be accessed every five years, but only with unanimous Council approval.

These measures balance Bitcoin’s upside potential against fiduciary responsibility and market volatility.

Targeted Public-Service Applications

Roswell has earmarked any eventual Bitcoin proceeds for two critical needs:

• Senior Water-Bill Aid: Subsidizing utility costs for low-income, elderly residents.
• Disaster Relief: Funding emergency response for floods, wildfires, and other local crises.

By designating specific social services, city leaders aim to demonstrate tangible benefits and cultivate public trust in this unconventional asset.

Operational Considerations and Risks

Implementing a municipal Bitcoin reserve requires rigorous protocols, including secure custody solutions with insured, compliant custodians to protect private keys; transparent accounting practices featuring regular mark-to-market reporting and public disclosures to uphold community trust; and robust regulatory compliance, with policies crafted to align with evolving state and federal guidance on how cities may hold and manage cryptocurrency assets. Roswell’s Finance Department must now establish these procedures in collaboration with specialized crypto service providers.

Adoption Challenges and Community Engagement

Roswell’s experiment also surfaces important lessons about introducing digital assets at the city level:

• Education Gaps: Residents and council members must understand Bitcoin’s benefits and risks through workshops, town halls, and pilot programs.
• Technical Expertise: Recruiting or contracting blockchain-savvy professionals is essential for secure implementation and ongoing management.
• Public Sentiment: Clear communication about how Bitcoin proceeds will fund social programs is critical to overcoming skepticism.

By proactively engaging stakeholders and building local capacity, Roswell can smooth the learning curve and reduce political friction around digital-asset experimentation.

Looking Ahead: Mainnet and Market Reactions

As Roswell’s Bitcoin Reserve Fund matures—through additional donations, Council deliberations, and eventual drawdowns—it will offer an unprecedented roadmap for other cities weighing crypto adoption in their public-finance toolkits.

More News: Central Bank of Switzerland Calls Bitcoin a Bad Reserve Asset — A Close-Up

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