Ken Sim, the mayor of Vancouver, has proposed exploring Bitcoin as part of the city’s financial strategy. He suggested that a Bitcoin reserve would help the city diversify its financial resources.
The mayor announced plans to formally introduce a motion for this Bitcoin reserve on Dec. 11.
More States are Inclining Towards a National Bitcoin Reserve
According to the mayor, Vancouver aims to become a Bitcoin-friendly city. The motion will focus on assessing whether Bitcoin could serve as a hedge against economic instability.
Sim’s political group, A Better City, previously caught the crypto community’s attention in April 2022 by accepting cryptocurrency donations.
“Vancouver is officially the most Bitcoin-friendly city in North America. Biggest Bitcoin monthly meetups, most BTC merchants per capita, and now, building a Bitcoin reserve,” Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).
Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador led the way in 2021 by making Bitcoin legal tender. According to Trading Economics, the country’s gross domestic product (GDP) rose from approximately $29 billion in 2021 to over $34 billion in 2023.
However, global institutions remain cautious about Bitcoin’s role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to enhance oversight of Bitcoin transactions.
In the US, conversations around adopting Bitcoin at a federal level are intensifying. Senator Cynthia Lummis has championed the idea of a strategic Bitcoin reserve, proposing legislation to formalize the concept.
Earlier this month, Lummis proposed that the upcoming government sell a portion of Federal Resreve’s gold to increase its Bitcoin holdings. At the same time, Pennsylvania introduced a bill to allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.
Most recently, investment management firm VanEck also joined the Bitcoin Reserve campaign. The company is actively endorsing BTC’s adoption as a state or national reserve asset. VanECK’s Bitcoin ETF HODL currently holds a net asset of $1.29 billion.
Overall, Vancouver’s exploration of Bitcoin aligns with a broader trend of governments and institutions considering the cryptocurrency as part of their financial frameworks.
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