Ken Sim, the mayor of Vancouver, has proposed that the city explore integrating Bitcoin into its financial systems as a potential strategy to combat inflation and safeguard its purchasing power.
On December 11, Mayor Sim introduced a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming a Bitcoin Friendly City” at a city council meeting. The motion suggests that adopting Bitcoin could help protect Vancouver from the adverse effects of inflation and fluctuations in traditional currency markets.
Sim emphasized Bitcoin’s 16-year history as a stable financial asset, arguing that its adoption could shield the city from the decline of traditional currencies. He referenced the successful Bitcoin integration efforts of cities like Zug and Lugano in Switzerland, Seoul in South Korea, El Salvador, and several African communities as examples. Sim proposed that Vancouver follow suit by incorporating Bitcoin into its financial reserves and exploring its use for tax payments and municipal fees.
The mayor pointed out that inflation has weakened Vancouver’s financial stability, affecting its capacity to deliver services. He suggested that diversifying Vancouver’s reserves with Bitcoin could help protect taxpayers from the harmful effects of currency devaluation.
To move this vision forward, Sim has called for a detailed report by the end of Q1 2025 to examine the feasibility of adopting Bitcoin. The report will analyze risks, benefits, and practical considerations, including asset management, storage, and liquidation strategies, while incorporating input from key stakeholders to establish a solid adoption framework.
This proposal builds on Sim’s earlier efforts to diversify Vancouver’s financial resources. In a previous council meeting on November 26, he introduced a similar motion aimed at evaluating Bitcoin as a reserve asset.
Meanwhile, the mayor joins a growing list of lawmakers and poliymakers advocating for Bitcoin as a solution to national financial issues. In July, U.S. Senator Cynthia Lummis introduced a similar proposal to address the the country’s mounting national debt, which recently surpassed $35 trillion. Lummis suggests that acquiring 1 million Bitcoin over five years could help stabilize the economy, with the government holding the assets for at least two decades. She believes this strategic reserve could curb the debt’s growth and secure future generations.
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