Vancouver examines 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 increase its financial resources.

The mayor announced on December 11th that he plans to officially launch this bitcoin stock movement.

More states are moving toward a national bitcoin reserve.

According to the mayor, Vancouver aims to become a Bitcoin-friendly city. The move focuses on assessing whether Bitcoin can be used as a hedge against economic volatility.

SIM's political group A Better City previously attracted the attention of the crypto community by accepting cryptocurrency donations in April 2022.

“Vancouver is officially the most Bitcoin-friendly city in North America. Largest Bitcoin monthly gatherings, most BTC traders per capita, and now, building Bitcoin reserves,” Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).

Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador He led the way in establishing Bitcoin legal tender in 2021. According to Trading Economics, the country's gross domestic product is expected to grow from about $29 billion in 2021 to more than $34 billion in 2023.

However, global institutions remain wary of Bitcoin's role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to increase its oversight of Bitcoin transactions.

Talks of adopting bitcoin at the federal level in the US are intensifying. Senator Cynthia Lammis promoted the idea of ​​strategic Bitcoin reserves by introducing legislation to formalize the concept.

Earlier this month, Lummis suggested that the incoming government sell some of the Federal Reserve's gold to increase its Bitcoin holdings. At the same time, Pennsylvania introduced a bill to allocate 10% of state funds to BTC, aiming to fight inflation and boost investments.

Most recently, investment management firm VanEck also joined the Bitcoin Reserve campaign. The company actively supports the adoption of BTC as a state or national reserve asset. The VanECK Bitcoin ETF HODL currently has a net worth of $1.29 billion.

Overall, Vancouver's bitcoin exploration matches the broader trend of governments and institutions adopting cryptocurrency as part of their financial frameworks.