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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Vancouver Mayor Ken Sim has urged the city council to explore Bitcoin integration into municipal financial systems in a bid to address inflation.
During the city council meeting on December 11, Sim introduced a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming a Bitcoin Friendly City.”
The proposal argues that the leading cryptocurrency has the potential to safeguard the city’s purchasing power amid inflationary pressures and volatile fiat currency markets.
Bitcoin is a Reliable Financial Instrument
Sim claimed that Bitcoin has a 16-year track record as a reliable financial instrument and suggested that adopting it could protect against the devaluation of traditional currencies.
The initiative reflects Sim’s longstanding support for cryptocurrency, underscored by his acceptance of crypto donations during his 2022 mayoral campaign.
Sim also noted the successes of cities and nations such as Zug and Lugano in Switzerland, Seoul in South Korea, El Salvador, and various African communities in leveraging Bitcoin. He argued that Vancouver could similarly benefit by incorporating Bitcoin into its financial reserves and exploring its use for tax payments and municipal fees.
The mayor stressed that recent inflation has eroded the city’s financial stability, impacting its ability to maintain services effectively. By diversifying Vancouver’s financial reserves with Bitcoin, Sim believes the city can better shield its taxpayers from the adverse effects of currency debasement and inflation.
To advance this vision, Sim has requested a comprehensive report by the end of Q1 2025 to evaluate the feasibility and implications of adopting Bitcoin. The study will assess potential risks, benefits, and practical aspects such as asset management, storage, and liquidation strategies. It will also include consultations with stakeholders to build a robust framework for Bitcoin adoption.
Sim first announced plans to diversify the city’s financial resources by adding Bitcoin to its balance sheet last month.
At the time, he submitted a notice of motion to explore the possibility of Bitcoin becoming a reserve asset for the city.
