Vancouver mayor proposes to adopt Bitcoin as reserve asset

Vancouver mayor turns to cryptocurrency: plans to introduce Bitcoin-friendly city proposal

The value of cryptocurrency is going up and up, and it changes many things. The world is evolving with cryptocurrency, and Vancouver Mayor Ken Sim is now seeking involvement. He proposed a motion for the city to adopt Bitcoin as a reserve asset.

The mayor proposed preserving the city's purchasing power through financial resource diversification. The motion promotes Vancouver's becoming a Bitcoin-friendly city and suggests that Vancouver invest in Bitcoin as a reserve asset^[1].

Ken Sim has been mayor of Vancouver since 2022. He presented the plan during the Vancouver City Council meeting and submitted a note of motion "Preserving of the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city" he intended to introduce in December.

It is not available on the website where other motions can be accessed. However, it drew attention as one of several global efforts this year to incorporate Bitcoin into the public financial system. Overall, this month was big for Bitcoin.

A reserve asset is something valuable that a government holds to help protect its economy, like gold or foreign currency. Bitcoin, with its digital nature and limited supply, is gaining attention as an option for this purpose.

The idea behind using Bitcoin is simple: it can hedge against inflation and economic instability. Since no central authority controls Bitcoin, governments see it as a way to diversify their reserves and reduce reliance on traditional currencies or assets.

Vancouver seeks to become a Bitcoin-friendly city at a specific time

The proposal follows a major surge in the value of Bitcoin. It recently surpassed $99,000 for the first time. After the election that Donald Trump managed to win, the value of Bitcoin skyrocketed. Experts predict that asset value is going to go up in recent months.

Vancouver is not the first city to discuss the adoption of Bitcoin. Similar motions have been introduced across the world. Speaking about Donald Trump, since he was elected again, there have been expectations that he would want to implement such an idea for the entire country.

The dash for asset class exposure could drive Bitcoin's success. This proposal and change Ken Sim offers could be a massive shift for this Canadian city. The mayor has proved to be a pro-cryptocurrency politician throughout his service^[2].

Vancouver elected K. Sim as mayor in October 2022. During his campaign, the political party he represents, A Better City, announced accepting cryptocurrency donations. He also noted that the decision was important to make. It showcased his party's commitment to technology. This would continue if the city adopted the proposal to create its own Bitcoin reserve.

After that, he rarely made any public statements on the adoption of Bitcoin or cryptocurrency overall. The mayor says he has fulfilled more than 70% of the 94 points laid out in his campaign since taking office.

Mayor demonstrates a forward-looking stance toward Bitcoin: is that enough for the approval?

While giving the interview to Global News, viewers could have seen the book The Bitcoin Standard by Saifedean Ammous in his office. The book was published in 2018, and many crypto proponents mention it, as well as its policies and ideas regarding Bitcoin adoption. This fact might show that K. Sim has knowledge on cryptocurrency after all^[3].

However, the proposed motion needs enough support to pass in the Vancouver City Council. If approved, Vancouver could join the list of governments exploring Bitcoin reserves. A few countries have started using Bitcoin as part of their financial strategy.

El Salvador is the most well-known example. In 2021, it became the first country to make Bitcoin legal currency, meaning it can be used like regular money. The government has also been buying Bitcoin as a reserve asset, hoping it will help the economy by attracting investment and reducing reliance on the U.S. dollar. They even plan to build a "Bitcoin City" to encourage more crypto-related businesses.

Miami, USA, is one of the top cities where Bitcoin is embraced. The mayor has pushed for Miami to become a crypto hub, and many businesses now accept Bitcoin for payments. The city has Bitcoin ATMs, and residents can even pay some city fees with Bitcoin.

Other cities like Zurich, Switzerland, and Lisbon, Portugal, also support Bitcoin use, with clear regulations and businesses that make it easy to pay with cryptocurrency. Buenos Aires, Argentina, has seen growing Bitcoin use due to economic challenges, with many locals turning to Bitcoin to protect their savings. These cities are leading the way in making Bitcoin a normal part of daily life.

Other countries, like Ukraine and Brazil, are also exploring Bitcoin. Ukraine has moved to regulate cryptocurrency and support its growth, while Brazil is considering diversifying its national reserves with Bitcoin. Though still new and risky due to Bitcoin's price swings, these countries are betting that Bitcoin could offer a safer, more independent financial future.