Missouri Mayor Pledges $1,000 in Bitcoin to Each Household in His Town
A fiscal stimulus paid in cryptocurrency
Image from Shutterstock
Mayor Jayson Stewart isn’t your typical politician. The 1,500 residents of his town are likely used to his unconventional views but likely believe he has their best interests at heart.
In September 2020 he was the second Missouri Mayor to pardon municipal marijuana offenders. In recent weeks he’s also taken a bold stance regarding Bitcoin — a cryptocurrency that he believes stands for the American ideals of freedom and liberty.
He has pledged to gift $1,000 in Bitcoin to every household in his town. In this brief interview he shares his intentions and inspirations for the move:
Following the lead of El Salvador
Many have made comparisons between Mayor Stewart’s plan and recent events in the country of El Salvador.
On September 7th 2021, El Salvador became the first country in the world to formally accept Bitcoin as legal tender(alongside the US Dollar). In a nation where an estimated 70% of citizens are unbanked (meaning they don’t have access to a bank account or basic banking facilities), the move was enabled everyone within the country to be able to send and receive money digitally, regardless of their prior economic status.
A significant percentage of its population live overseas (mainly in the USA) and send money home — where such transactions previously relied upon costly money transfer services like Western Union, Bitcoin has immediately provided a low-cost alternative.
Since the adoption of Bitcoin as a currency, El Salvadorans are able to hold the cryptocurrency and use it to send and receive funds via digital wallet apps on their smartphones, which almost all citizens have.
To kick start the project, each person was gifted $30 worth of Bitcoin by the government. Bitcoin has fluctuated in value since, but as at October 24th that $30 would be worth around $39.60 — an increase in excess of 30%.
The haters and detractors
While many critics of Bitcoin (and cryptocurrency more generally) are keen to point out that its value fluctuates wildly both up and down, its recent gain demonstrates its enormous potential as an appreciating investment. Even the smallest holders of Bitcoin can experience gains if they’re willing to hold for the medium to long term and ride out the radical and regular short-term fluctuations.
Those who are willing to hold it for the long term may enjoy increases in value of their holding — particularly appealing for those who were given it in the first place.
Bitcoin hasn’t been universally well-received in El Salvador, in spite of its potential. Many have protested against Bitcoin, objecting to the way in which President Nayib Bukele has seemingly forced it upon citizens of the nation.
While there are unlikely to be such vocal protests from the residents of Cool Valley, some may reasonably question whether more good could be done by simply giving each household $1,000 in USD rather than $1,000 worth of Bitcoin.
Mayor Stewarts motivation seems to run deeper than providing one-time bailouts to his citizens. The Bitcoin gift is about introducing citizens to cryptocurrency as a potential means of improving their long-term financial position if they should choose to hold it rather than converting and spending it.
Save it or spend it
Mayor Stewart hopes the gift of Bitcoin to residents of his town will be a means of them building wealth for the future, but it can be spent just like a normal currency.
Merchants can easily accept it by using their own digital wallet on a smartphone, or it can be converted to conventional currency on a crypto exchange or by using online services like PayPal. In this way, the residents of Cool Valley who need dollars or want to spend their Bitcoin could easily do so.
In El Salvador, merchants across the nation were able to accept Bitcoin in payment for goods including at their local Starbucks:
Source: Twitter
One month after El Salvador’s adoption of Bitcoin, President Bukele announced that those who pay for their gasoline using Bitcoin via the national ‘Chivo’ crypto wallet will receive a discount of 20 cents per gallon off their fuel.
This subsidy has presumably been enabled by the savings being made in transaction fees that would otherwise be incurred from processing payments in dollars via the conventional banking system. It also demonstrates that Bitcoin can have genuine utility in place of conventional currency, and can enable incentives and benefits for the general public through its adoption.
Freedom, hope and optimism
Mayor Stewart seems to share many perspectives and beliefs held within the wider Bitcoin community. He recognizes that it’s more than an alternative to conventional money. He sees its potential to change lives to a far greater extent than giving people $1,000 ever could.
In August 2021, Nasdaq reported that a $1,200 stimulus check from April 2020 would be worth $8,500 if it had been immediately invested in Bitcoin.
As at October 2021, that $1200 would now be worth over $10,500.
The Mayor of Cool Valley knows that Bitcoin is about more than its potential as a store of value though. His comments during a recent interview with Bitcoin Magazine give a clear indication of his perspective:
“There’s a certain level of hope and optimism that I get from bitcoin. Bitcoin is fundamentally American. It is the most American thing. Our government is built on freedom and personal liberty, and rights and self-sovereignty, and all of the things that bitcoin really is. I think it’s a natural marriage that bitcoin in America will thrive.”
— Mayor Jayson Stewart of Cool Valley, Missouri
The mayor has won the admiration of the Bitcoin community for his comments and for his bold plan for the residents of Cool Valley. No doubt most of them will be appreciative too, even if they choose to cash-in their free Bitcoin immediately instead of holding their Bitcoin for the longer term!
Originally published on Medium