Ken Sim — the mayor of Vancouver, one of Western Canada’s biggest cities — proposed adding Bitcoin (BTC) to the local government’s reserves.
During the Nov. 26 Vancouver City Council meeting, Sim submitted a notice of motion under the title Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city.” As the title suggests, the motion aims to assess Bitcoin’s potential as a way to safeguard the city’s purchasing power amid economic turmoil.
The motion itself is not yet available on the government’s website, but it is set to be formally introduced on Dec. 11. Sim’s political party — A Better City — had already garnered the attention of the crypto community when, back in April 2022, it started accepting cryptocurrency donations. He said at the time:
“We want to demonstrate our commitment to technology both in terms of embracing it to help improve service at City Hall and to promote Vancouver as a tech center. […] Whether it’s automating applications processes, or using AI to optimize city planning, we need to use technology to remain ahead of the curve.”
Despite the announcement made back in 2022, the city failed to commit to major pro-crypto moves until this one following Sim’s election.
Not an isolated instance
Bitcoin is seeing its governmental adoption grow slowly but surely. The trend first started when El Salvador adopted Bitcoin as its legal tender back in 2021. Trading Economics data shows that the country’s gross domestic product (GDP) stood at a little over $29 billion, it reached over $34 billion in 2023 — over 17% higher.
Despite this, global financial policy-shaping organizations have put pressure on El Salvador to limit its adoption of Bitcoin. In early October, the International Monetary Fund (IMF) urged El Salvador to strengthen its oversight over Bitcoin transactions in the country.
IMF spokesperson Julie Kozack said at the time that El Salvador should limit both its Bitcoin adoption and the public sector’s exposure to it. In mid-May, data released by the country’s “Bitcoin Office” showed that El Salvador could hold up to 5,750 BTC.
During his election campaign, United States President-elect Donald J. Trump and Wyoming Republican Senator Cynthia Lummis unveiled plans for the U.S. to create its own strategic Bitcoin reserve. These acquisitions would be partially financed by revaluing gold certificates held by the Federal Reserve System.
These plans attracted a fair share of criticism, but soon other lawmakers decided to follow in their footsteps. Earlier this week, Brazilian Congressman Eros Biondini proposed that the nation create its own Bitcoin reserve. The Bitcoin reserve would account for up to 5% of Brazil’s international reserve funds—currently amounting to about $372 billion.
