Joining a global trend of governmental crypto adoption, Vancouver’s mayor has proposed the establishment of a Bitcoin reserve to fortify the city’s finances.
Mayor Ken Sim of Vancouver has suggested the establishment of a Bitcoin reserve as a means of fortifying the city’s financial strategy. The objective of the plan, which will be officially unveiled on December 11, is to investigate the potential of Bitcoin to diversify resources and act as a protective measure against economic instability. Sim’s motion is indicative of the increasing interest in the adoption of Bitcoin by governments.
The city of Vancouver is striving to become one of the most Bitcoin-friendly in North America, as per Sim. This is consistent with the cryptocurrency donations that his political organization, A Better City, accepted in 2022. Julian Figueroa, a Canadian crypto entrepreneur, observed that Vancouver has the highest number of Bitcoin merchants per capita and the largest Bitcoin meetings on the continent.
Governments are increasingly adopting Bitcoin on a global scale. El Salvador established a precedent in 2021 by recognizing Bitcoin as legal tender. According to Trading Economics, the nation’s GDP has increased from $29 billion in 2021 to $34 billion in 2023. Nevertheless, there are those who remain skeptical. In October, the International Monetary Fund (IMF) recommended that El Salvador enhance its supervision of Bitcoin transactions.
Discussions regarding Bitcoin as a federal reserve asset are on the rise in the United States. Senator Cynthia Lummis has recently proposed the sale of a portion of the Federal Reserve’s bullion in order to acquire Bitcoin, and she has previously advocated for the establishment of a strategic Bitcoin reserve. The state of Pennsylvania also proposed the allocation of 10% of its funds to Bitcoin in order to diversify investments and combat inflation.
Additionally, private institutions are also adopting this trend. VanEck, an investment management firm, is advocating for the implementation of Bitcoin as a state or national reserve asset. Currently, the Bitcoin ETF, HODL, is holding assets valued at $1.29 billion. Vancouver’s initiative is a component of a broader global trend toward the recognition of Bitcoin as a strategic financial instrument.
Vancouver is establishing itself as a leader in the adoption of municipal cryptocurrency as it investigates this possibility, thereby enabling other governments to evaluate the potential of Bitcoin in public finance.
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