Key Points
- Vancouver, Canada is considering integrating Bitcoin into its city finances.
- Mayor Ken Sim is proposing a motion to diversify financial reserves and become a Bitcoin-friendly city.
Vancouver, a city in Canada, is contemplating the integration of Bitcoin into its financial operations. This move comes as Bitcoin price surges to record highs above $100,000, following the victory of Donald Trump last month.
Preserving City’s Purchasing Power
On December 11, Mayor Ken Sim plans to propose a motion to the Vancouver City Council titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City”. The ABC party, led by Sim, currently holds a majority on the council, increasing the likelihood of the motion passing.
If approved, the motion would prompt city staff to investigate methods of incorporating digital assets into Vancouver’s operations. Potential applications could include accepting taxes and fees in Bitcoin or converting a portion of the city’s financial reserves into digital currency.
Vancouver has long been a hub for cryptocurrency innovation, boasting a rich history in this field. In 2013, the city introduced the world’s first Bitcoin ATM and is home to blockchain startups such as NFT pioneer Dapper Labs Inc.
Bitcoin’s Potential Benefits
In his motion, Mayor Sim outlines the potential benefits Bitcoin has brought to states that have adopted it. For instance, El Salvador has significantly reduced its debt by making Bitcoin legal tender in 2021. The country continues to add one Bitcoin to its treasury daily as part of its strategy to build a Bitcoin reserve. Similarly, Zug in Switzerland has begun accepting Bitcoin payments for taxes.
The proposal suggests that adopting Bitcoin would demonstrate a pro-innovation stance and help safeguard the city’s purchasing power from the “volatility, devaluation, and inflationary pressures” associated with traditional currencies.
The motion also emphasizes that despite Bitcoin mining’s high energy consumption, it has yielded environmental benefits by utilizing surplus energy from stranded renewable sources and waste methane. As such, Bitcoin supports the financial viability of renewable energy projects while reducing emissions.
Increasing Interest in Bitcoin
Following Donald Trump’s US election victory last month, every major economy is closely monitoring his plans for Bitcoin and the cryptocurrency industry. Discussions about building a strategic Bitcoin reserve for the US have recently gained attention.
The market is also reacting positively to the appointment of pro-crypto candidates such as Paul Atkins, who is set to become the next SEC chief from January 2025. Additionally, Trump recently announced the appointment of David Sacks as the new crypto czar at the White House.
