Mayor Ken Sim has proposed a study on the feasibility of using Bit as an inflation hedge.
Mayor Ken Sim is pushing the Vancouver City Council to consider integrating Bit into the city's financial strategy. The proposal titled "Protecting the City's Purchasing Power Through Financial Reserve Diversification - Becoming a Bit-Friendly City" will be presented at the council meeting on December 11. Mr. Sim believes that with 16 years of development, Bit has the potential to become an inflation hedge and reduce the depreciation of traditional currencies.
This proposal reflects Mr. Sim's positive view of cryptocurrencies, as he has allowed cryptocurrency contributions in his 2022 mayoral campaign. He believes that the current inflationary pressure is having a strong impact on centralized monetary systems, reducing the city's purchasing power.
In this context, diversifying financial reserves with Bit could be an effective solution. Mr. Sim also cited examples of cities and countries that have started to adopt Bit and other cryptocurrencies, such as Zug and Lugano (Switzerland), Seoul (South Korea), El Salvador, Pennsylvania (USA), and some localities in Africa.
Mr. Sim's "Bit-Friendly City" strategy includes considering the feasibility of accepting Bit for tax and fee payments. He believes that holding Bit will help protect Vancouver's purchasing power from the volatility and inflationary pressure of traditional currencies, while also benefiting residents by "protecting the value and purchasing power of their precious tax dollars."
To assess the feasibility of this proposal, Mr. Sim has requested a detailed report by the end of Q1 2025. The report will analyze critical factors such as feasibility, risks, and potential benefits of adopting Bit, including issues related to asset management, conversion, and building a framework for public Bit storage.
