In an effort to diversify city finances and preserve purchasing power, Vancouver Mayor Ken Sim has proposed making Bitcoin a reserve asset. The motion is scheduled for council review on December 11.
Ken Sim, the mayor of Vancouver since 2022, has announced plans to diversify the city’s financial resources by adding Bitcoin to its balance sheet.
The proposal was introduced during a Vancouver city council meeting on November 26, where Sim submitted a notice of motion titled “Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city.”
Could Vancouver Become the First City to Hold Bitcoin as a Reserve Asset?
At a Vancouver City Council meeting on November 26, Mayor Sim submitted a notice of motion to explore the possibility of Bitcoin becoming a reserve asset for the city.
The purpose of the motion is to evaluate how Bitcoin might protect Vancouver’s purchasing power in the face of economic uncertainty and diversify the city’s financial resources.
JUST IN: City of Vancouver, Canada proposes motion to hold #Bitcoin as a reserve asset 🇨🇦 pic.twitter.com/TVfpywAcoS
— Altcoin Daily (@AltcoinDailyio) November 27, 2024
The motion will be formally introduced on December 11; however, as of November 27, it was not accessible on the city government’s website.
According to Bitcoin proponent and author Jeff Booth, the motion aims for Vancouver to adopt Bitcoin as a reserve asset, following a growing trend in both local and federal governments in the United States to establish Bitcoin reserves.
Although it is unclear if Sim’s motion will receive enough support from the Vancouver City Council to pass, it has raised interest in cryptocurrencies.
Sim’s political party, A Better City, made headlines during his mayoral campaign by accepting crypto donations.
He claimed that this action showed his dedication to technology and implied that, should he be elected, he would encourage the use of cryptocurrencies in municipal operations.
Sim, however, has not openly encouraged the adoption of cryptocurrencies or Bitcoin since assuming office in October 2022.
In an interview with Global News on November 25, it was disclosed that Sim’s Vancouver City Hall office had a copy of Saifedean Ammous’s The Bitcoin Standard.
The book advocates for Bitcoin as a global monetary standard and has become a key reference for crypto proponents.
Bitcoin’s Surge and U.S. Legislative Moves: Is a State-Backed Bitcoin Reserve the Future?
As Sim’s motion moves forward, whether the Vancouver City Council will back the proposal remains to be seen.
Since taking office, Sim has already accomplished more than 70% of his campaign goals, demonstrating his momentum and clout in the local political scene.
As the price of Bitcoin approaches $100,000, interest in the cryptocurrency is growing.
Market momentum and political backing, such as expanding debates of advantageous federal policies, are driving this upswing.
With rumors of a U.S. sovereign wealth fund holding Bitcoin, Senator Lummis has pushed for legislation to establish a U.S. strategic Bitcoin reserve. This idea is gaining traction among lawmakers and the financial media.
Traditional finance (TradFi) investment in crypto is also accelerating.
Since the introduction of Bitcoin spot ETFs, such as BlackRock’s, the value of gold has surpassed $34 billion in assets.
MicroStrategy’s $1.75 billion bond issuance to buy more Bitcoin further backed this trend.