Ken Sim, the mayor of Vancouver, has proposed to consider BTC as part of the city's financial strategy. He suggested that a BTC reserve would help the city diversify its financial resources.
The mayor has announced a formal plan to introduce a proposal for this BTC reserve on 12/11.
Many states are trending to hold BTC
According to the mayor, Vancouver is aiming to become a BTC-friendly city. The proposal will focus on assessing whether BTC can serve as a hedge against economic instability. Sim's political group, A Better City, previously drew the attention of the crypto community in 04/2022 by accepting crypto donations.
"Vancouver is officially the most BTC-friendly city in North America. Largest monthly BTC meetups, most BTC merchants per capita, and now, building a BTC reserve,"
Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).
Meanwhile, BTC adoption at the government level continues to evolve. El Salvador pioneered in 2021 by recognizing BTC as legal tender. According to Trading Economics, the country's gross domestic product (GDP) has increased from around $29 billion in 2021 to over $34 billion in 2023. However, global institutions remain cautious about the role of BTC in the national economy. In October, the International Monetary Fund (IMF) called on El Salvador to strengthen oversight of BTC transactions.
In the US, discussions about BTC adoption at the federal level are becoming more active. Senator Cynthia Lummis has supported the idea of a strategic BTC reserve, proposing legislation to formally institutionalize this concept. Earlier this month, Lummis proposed that the upcoming government sell a portion of the Federal Reserve's gold to increase its BTC holdings. Meanwhile, Pennsylvania has introduced a bill to allocate 10% of the state's funds to BTC, to hedge against inflation and diversify investments.
Recently, the investment management firm VanEck has also joined the BTC Reserve campaign. The company is actively advocating for the adoption of BTC as a reserve asset for states or nations. VanEck's BTC ETF HODL currently holds net assets worth $1.29 billion.
Overall, Vancouver's exploration of BTC aligns with the broader trend of governments and institutions considering cryptocurrencies as part of their financial framework.
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