According to Cointelegraph, Vancouver Mayor Ken Sim has called on the city council to consider incorporating Bitcoin into the city's financial strategies, highlighting its potential to enhance financial stability amid fluctuating fiat markets. During a city council meeting on December 11, Sim introduced a motion titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.” He emphasized Bitcoin's 16-year history of building a solid reputation and suggested it could act as a hedge against inflation and currency devaluation.
Sim's proposal is consistent with his previous support for cryptocurrency adoption. In 2022, he accepted crypto donations during his mayoral campaign, indicating his willingness to utilize digital assets for public benefit. He cited examples of various governments, including those in Zug and Lugano in Switzerland, Seoul in South Korea, El Salvador, Pennsylvania, and several African villages, that have benefited from adopting Bitcoin and other cryptocurrencies.
Sim pointed out that recent inflationary pressures on centralized fiat currency systems have negatively impacted the city's purchasing power. He recommended diversifying the city's financial reserves to include Bitcoin as a means to combat these challenges. To transform Vancouver into a "Bitcoin-friendly city," Sim proposed new financial strategies, such as accepting taxes and fees in Bitcoin. He argued that owning Bitcoin would help preserve Vancouver's purchasing power and protect against the volatility, debasement, and inflationary pressures of traditional currencies.
Furthermore, Sim stated that incorporating Bitcoin into Vancouver's financial reserves and payment options would ultimately benefit taxpayers by preserving the value and purchasing power of tax dollars. He has requested a report on the "Bitcoin Friendly City" strategy by the end of the first quarter of 2025. This report will assess the feasibility, risks, and potential benefits of Bitcoin adoption. The study will include a review of asset management and conversion implications, the development of a comprehensive framework for Bitcoin storage and liquidation, and community involvement in building proposals.
