Vancouver is making waves in the world of Bitcoin [BTC], as it considers the possibility of incorporating the cryptocurrency into its financial reserves.
During a city council meeting on December 11, Mayor Ken Sim put forth a proposal centered around assessing BTC’s viability as a hedge against economic volatility.
This move is part of Sim’s larger vision to position Vancouver as a city that embraces Bitcoin.
Notably, Sim’s political faction, known as “A Better City,” had previously made headlines in April 2022 for accepting cryptocurrency donations, indicating a growing interest in digital assets within the city’s leadership.
The Drive Towards Bitcoin Reserves in Vancouver
Commenting on this development, Canadian crypto entrepreneur Julian Figueroa expressed his views on X (formerly Twitter), mentioning,
“Vancouver is officially the most Bitcoin-friendly city in North America. It hosts the largest Bitcoin meetups, has the highest number of BTC merchants per capita, and now, is contemplating setting up a Bitcoin reserve.”
Moreover, Bitcoin advocate and author Jeff Booth discussed in an X Spaces conversation that Mayor Sim’s proposition aims to establish BTC as a reserve asset for the city.
Global Trends in Bitcoin Adoption by Governments
Following the 2024 elections, legislators in Pennsylvania and the U.S. Senate proposed leveraging Bitcoin as part of government reserves, indicating a broader trend towards cryptocurrency adoption in public financial planning.
The adoption of Bitcoin at the governmental level is gaining momentum, with El Salvador making history as the first country to adopt BTC as legal tender in 2021.
This bold step has resulted in significant economic growth, with the country’s GDP rising from around $29 billion in 2021 to over $34 billion by 2023, as reported by Trading Economics.
However, international bodies like the International Monetary Fund (IMF) are proceeding cautiously, stressing the importance of robust oversight of Bitcoin transactions.
In October, the IMF urged El Salvador to strengthen its regulatory framework, citing concerns regarding financial stability and governance.
Furthermore, there is a growing movement towards considering Bitcoin as a strategic reserve asset in the U.S. Senator Cynthia Lummis is advocating for a federal BTC reserve, while Pennsylvania is looking to allocate 10% of state funds to Bitcoin to counter inflation.
Anthony Pompliano, the founder and CEO of Professional Capital Management, underscored the significance of recent proposals related to BTC reserves in the United States, particularly Senator Cynthia Lummis’s efforts.
Institutional Shift Towards Bitcoin
Indeed, investment company VanEck has also joined the trend, endorsing Bitcoin as a reserve asset. Their BTC ETF, HODL, holds $1.29 billion in net assets.
In essence, Vancouver’s exploration of BTC as a financial asset mirrors a growing global pattern where governments and institutions are weighing the possibility of integrating cryptocurrencies into their financial strategies.