Vancouver’s Mayor Ken Sim has announced plans to create a Bitcoin reserve as part of the city’s financial strategy, aiming to explore how the cryptocurrency could help diversify resources and provide a hedge against economic uncertainty. The proposal, set to be formally introduced on December 11, highlights a growing interest in Bitcoin adoption by governments worldwide.
Sim envisions Vancouver becoming one of North America’s most Bitcoin-friendly cities. His political group, A Better City, has previously embraced cryptocurrency, accepting Bitcoin donations during the 2022 municipal campaign. Julian Figueroa, a Canadian crypto entrepreneur, pointed out that Vancouver already leads the continent in Bitcoin adoption, hosting the largest meetups and boasting the most Bitcoin merchants per capita.
Globally, government interest in Bitcoin is on the rise. El Salvador’s 2021 decision to adopt Bitcoin as legal tender made headlines, and the country has since seen its GDP grow from $29 billion in 2021 to $34 billion in 2023, according to Trading Economics. However, critics like the International Monetary Fund (IMF) have called for tighter oversight of Bitcoin use in public finances.
In the United States, Bitcoin’s role as a potential reserve asset is gaining traction. Senator Cynthia Lummis has advocated for selling part of the Federal Reserve’s gold reserves to invest in Bitcoin. Pennsylvania lawmakers have also proposed allocating 10% of the state’s funds to Bitcoin as a hedge against inflation.
Private institutions are following suit, with asset manager VanEck promoting Bitcoin as a strategic reserve asset for governments. Its Bitcoin ETF, HODL, manages $1.29 billion in assets, reflecting growing institutional confidence in the cryptocurrency.
If Vancouver moves forward, the city could set a precedent for municipal-level Bitcoin adoption, joining a global trend of governments exploring the cryptocurrency’s role in modern finance.
Featured image from: fintech.ca