Canada's Bitcoin-Friendly City to Discuss BTC Reserves
The U.S. state of Vancouver is considering integrating Bitcoin into its financial reserves. Some legislative bodies in the United States are showing increasing institutional confidence by proposing to recognize Bitcoin as a reserve asset. Vancouver Mayor Ken Sim plans to address this issue at a city council meeting scheduled for December 11. This move aims to view BTC as a hedge against economic instability. Sim envisions positioning Vancouver as a Bitcoin-friendly city. City leaders captured attention by accepting cryptocurrency donations in April 2022, demonstrating their interest in digital assets. Canadian crypto entrepreneur Julian Figueroa emphasized the significance of this initiative, stating that Vancouver is the most Bitcoin-friendly city in North America.
The Bitcoin reserve initiative from Vancouver Canadian Bitcoin advocate and author Jeff Booth expressed that Mayor Sim’s proposal aims to make Bitcoin a reserve asset for Vancouver. As cities like Vancouver consider integrating Bitcoin into their financial strategies, this trend is observed to be spreading to other countries. Following the 2024 elections, legislative bodies in Pennsylvania and the U.S. Senate proposed using Bitcoin for government reserves. This reflects a growing trend towards the use of cryptocurrencies in public financial policies.
El Salvador, which has led the way in accepting Bitcoin as legal tender, increased its economic growth with this step, raising its gross domestic product (GDP) from approximately $29 billion in 2021 to $34 billion in 2023. However, global organizations, especially the International Monetary Fund (IMF), are emphasizing the need for stronger oversight of Bitcoin transactions. In October, the IMF requested that El Salvador strengthen its regulatory framework.
Expansion of Bitcoin adoption at the state level In the U.S., discussions around the adoption of Bitcoin at the federal level are intensifying. Senator Cynthia Lummis views Bitcoin as a strategic reserve and has proposed legislation around this concept. Lummis suggests that the Fed could sell a portion of its gold reserves to invest in Bitcoin. Pennsylvania has presented a bill indicating plans to allocate 10% of state funds to Bitcoin, aiming to combat inflation.
Investment management firm VanEck has also joined the Bitcoin reserve campaign, supporting the adoption of BTC as a state or national reserve asset. VanEck's Bitcoin ETF, HODL, currently boasts net assets of $1.29 billion. Vancouver’s initiative to evaluate Bitcoin in its financial reserves appears to align with a broader trend of institutions and governments seeking to incorporate cryptocurrencies into their financial frameworks.