Vancouver Explores Bitcoin Reserve for Financial Stability
Vancouver Mayor Ken Sim has proposed exploring Bitcoin as part of the city’s financial strategy. He suggested that the Bitcoin reserve would help the city diversify its financial resources.
The mayor announced plans to formally propose a Bitcoin reserve motion on December 11.
More states lean toward establishing national Bitcoin reserves
according to mayorVancouver aims to become a Bitcoin-friendly city. The motion will focus on assessing whether Bitcoin can serve as a hedge against economic instability.
Sim’s political group A Better City previously attracted attention from the cryptocurrency community in April 2022 by accepting cryptocurrency donations.
“Vancouver is officially the most Bitcoin-friendly city in North America. Biggest monthly Bitcoin meetup, most Bitcoin merchants per capita, and now building Bitcoin reserves,” Canadian crypto entrepreneur Julian Figueroa Figueroa) wrote on X (formerly Twitter).
Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador was the first to make Bitcoin legal tender in 2021. The country’s gross domestic product (GDP) will increase from about $29 billion in 2021 to more than $34 billion in 2023, according to Trading Economics.
However, global institutions remain cautious about Bitcoin’s role in national economies. October, International Monetary Fund (IMF) calls on El Salvador Strengthen supervision of Bitcoin transactions.
In the United States, the conversation revolves around Adopting Bitcoin at the Federal Level is intensifying. Senator Cynthia Lummis supports the idea of a Bitcoin strategic reserve and has proposed legislation to formalize the concept.
Earlier this month, Lummis proposed that the incoming administration Selling some of the Federal Reserve’s gold to increase its Bitcoin holdings. at the same time, Pennsylvania introduces bill Allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.
Recently, investment management companies VanEck also joins Bitcoin reserve campaign. The company is actively supporting Bitcoin as a state or national reserve asset. Van Eyck’s Bitcoin ETF HODL currently holds net assets of $1.29 billion.
Overall, Vancouver’s exploration of Bitcoin fits into a broader trend of governments and institutions considering cryptocurrencies as part of their financial frameworks.
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