Vancouver Mayor Proposes Bitcoin Reserve Plan

Vancouver’s Mayor Ken Sim has proposed the idea of creating a Bitcoin reserve to strengthen the city’s financial strategy. The plan, which will be formally introduced on December 11, aims to explore whether Bitcoin can diversify resources and serve as a hedge against economic instability. Sim’s motion reflects growing interest in Bitcoin adoption at the governmental level.

According to Sim, Vancouver is working toward becoming one of the most Bitcoin-friendly cities in North America. This aligns with earlier efforts by his political group, A Better City, which accepted cryptocurrency donations in 2022. Julian Figueroa, a Canadian crypto entrepreneur, noted that Vancouver already boasts the largest Bitcoin meetups and the highest number of Bitcoin merchants per capita on the continent.

Globally, Bitcoin adoption by governments is gaining traction. El Salvador set an example in 2021 by declaring Bitcoin legal tender. The country has since seen its GDP grow from $29 billion in 2021 to $34 billion in 2023, according to Trading Economics. However, not everyone is convinced. The International Monetary Fund (IMF) urged El Salvador in October to tighten oversight on Bitcoin transactions.

In the United States, discussions about Bitcoin as a federal reserve asset are increasing. Senator Cynthia Lummis has advocated for a strategic Bitcoin reserve and recently suggested selling part of the Federal Reserve’s gold to buy Bitcoin. Pennsylvania also introduced a proposal to allocate 10% of state funds to Bitcoin as a way to combat inflation and diversify investments.

Private institutions are also joining the trend. Investment management firm VanEck is promoting Bitcoin adoption as a state or national reserve asset. Its Bitcoin ETF, HODL, currently holds assets worth $1.29 billion. Vancouver’s initiative is part of a growing global shift toward considering Bitcoin as a strategic financial tool.

As Vancouver explores this possibility, the city is positioning itself at the forefront of municipal cryptocurrency adoption, paving the way for other governments to assess Bitcoin's potential role in public finance.