Vancouver mayor Ken Sim has proposed exploring Bitcoin as part of the city’s financial strategy. He believes that a Bitcoin reserve fund will help the city diversify its financial resources.
The mayor announced plans to officially launch this Bitcoin reserve proposal on December 11.
Many States Lean Into Bitcoin National Reserve Fund
According to mayorVancouver aims to become a Bitcoin-friendly city. The proposal will focus on assessing whether Bitcoin can serve as a hedge against economic instability.
Mr. Sim’s political group, A Better City, previously attracted the attention of the crypto community in April 2022 by accepting cryptocurrency donations.
“Vancouver is officially the most Bitcoin-friendly city in North America. Largest monthly Bitcoin meetup, most BTC merchants per capita, and now, building Bitcoin reserves,” Canadian crypto entrepreneur Julian Figueroa write on X (formerly Twitter).
Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador has led the way in 2021 in accepting Bitcoin as legal tender. According to Trading Economics, the country’s gross domestic product (GDP) has increased from about 29 billion USD in 2021 to more than 34 billion USD in 2023.
Still, international organizations remain cautious about Bitcoin’s role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to increase monitoring of Bitcoin transactions.
In the US, discussions about Bitcoin adoption at the federal level are increasing. Senator Cynthia Lummis has supported the idea of a strategic Bitcoin reserve, proposing to legislate the concept.
Earlier this month, Lummis proposed that the incoming government sell a portion of the Federal Reserve’s gold reserves 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.
Recently, investment management company VanEck also joined the Bitcoin Reserve Fund campaign. This company is actively advocating for the adoption of BTC as a national or state reserve asset. VanECK’s HODL Bitcoin ETF currently holds net assets worth $1.29 billion.
Overall, Vancouver’s exploration of Bitcoin fits into a broader trend of governments and institutions considering cryptocurrencies as part of their financial framework.