Vancouver Mayor Suggests Plan to Establish Bitcoin Reserve

Vancouver’s Mayor, Ken Sim, has proposed the creation of a Bitcoin reserve to enhance the city’s financial strategy, aligning with the growing global trend of governmental crypto adoption. 

Photo by drobotdean on Freepik

The proposal, set to be formally introduced on December 11, aims to evaluate whether Bitcoin can serve as a tool to diversify assets and protect against economic instability. This move is part of Sim’s broader vision to make Vancouver one of North America’s leading Bitcoin-friendly cities.

Sim’s proposal builds on previous initiatives by his political group, A Better City, which accepted cryptocurrency donations in 2022. Canadian crypto entrepreneur Julian Figueroa highlighted that Vancouver already hosts the largest Bitcoin meetups and has the highest number of Bitcoin merchants per capita in the country.

Globally, government adoption of Bitcoin is gaining momentum. El Salvador made history in 2021 by adopting Bitcoin as legal tender. The country’s GDP has risen from $29 billion in 2021 to $34 billion in 2023, according to Trading Economics. However, this move has been met with skepticism, with the International Monetary Fund (IMF) urging El Salvador to tighten its regulation of Bitcoin transactions.

In the U.S., there are increasing discussions about Bitcoin’s potential as a federal reserve asset. Senator Cynthia Lummis has proposed that the Federal Reserve hold Bitcoin as part of its reserves and even suggested selling some of its gold holdings to fund Bitcoin purchases. Pennsylvania has also introduced a proposal to allocate 10% of state funds to Bitcoin as a strategy to combat inflation and diversify investments.

Private institutions are also getting involved in Bitcoin adoption. Investment firm VanEck advocates for Bitcoin as a state or national reserve asset, with its Bitcoin ETF, HODL, currently managing assets worth $1.29 billion. Vancouver’s proposal is part of a broader global shift that is exploring Bitcoin as a strategic financial tool.

As the city moves forward with this initiative, Vancouver is positioning itself as a leader in municipal cryptocurrency adoption, potentially setting an example for other governments to evaluate Bitcoin’s role in public finance.