Vancouver Mayor Proposes Bitcoin Reserve to Enhance Financial Strategy
Vancouver’s Mayor Ken Sim has proposed creating a Bitcoin reserve to enhance the city’s financial strategy. This plan, set for formal introduction on December 11, aims to determine if Bitcoin can diversify resources and act as a hedge against economic instability. Sim’s motion indicates increasing governmental interest in Bitcoin adoption.
According to Sim, Vancouver seeks to become one of North America's most Bitcoin-friendly cities. This aligns with previous initiatives by his political group, A Better City, which accepted cryptocurrency donations in 2022. Canadian crypto entrepreneur Julian Figueroa noted that Vancouver hosts the largest Bitcoin meetups and has the highest number of Bitcoin merchants per capita in the continent.
Globally, government adoption of Bitcoin is rising. El Salvador declared Bitcoin legal tender in 2021, with GDP growth from $29 billion in 2021 to $34 billion in 2023, according to Trading Economics. However, the International Monetary Fund (IMF) advised El Salvador in October to enhance oversight on Bitcoin transactions.
In the United States, discussions about Bitcoin as a federal reserve asset are intensifying. Senator Cynthia Lummis has supported establishing a strategic Bitcoin reserve and suggested selling part of the Federal Reserve’s gold to acquire Bitcoin. Pennsylvania has proposed allocating 10% of state funds to Bitcoin to address inflation and diversify investments.
Private institutions are also participating in this trend. Investment management firm VanEck is advocating for Bitcoin as a state or national reserve asset. Its Bitcoin ETF, HODL, currently manages assets worth $1.29 billion. Vancouver’s initiative contributes to a growing global movement toward recognizing Bitcoin as a strategic financial tool.
As Vancouver considers this possibility, it positions itself at the forefront of municipal cryptocurrency adoption, encouraging other governments to evaluate Bitcoin's potential role in public finance.