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Ken Sim, the mayor of Vancouver, has proposed exploring Bitcoin as part of the city’s financial strategy. He urged that a Bitcoin reserve would assist the city diversify its financial assets.
The mayor announced plans to formally introduce a circulate for this Bitcoin reserve on Dec. 11.
More States are Inclining Towards a National Bitcoin Reserve
According to the mayor, Vancouver aims to develop into a Bitcoin-friendly city. The circulate will focal point on assessing whether Bitcoin may wait on as a hedge against financial instability.
Sim’s political community, A Better City, beforehand caught the crypto community’s attention in April 2022 by accepting cryptocurrency donations.
“Vancouver is officially the most Bitcoin-friendly city in North America. Largest Bitcoin monthly meetups, most BTC merchants per capita, and now, building a Bitcoin reserve,” Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).
Meanwhile, Bitcoin adoption at the authorities level continues to develop. El Salvador led the way in 2021 by making Bitcoin legal comfortable. According to Trading Economics, the country’s inferior domestic product (GDP) rose from approximately $29 billion in 2021 to over $34 billion in 2023.
On the opposite hand, global institutions remain cautious about Bitcoin’s role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to enhance oversight of Bitcoin transactions.
In the US, conversations around adopting Bitcoin at a federal level are intensifying. Senator Cynthia Lummis has championed the idea of a strategic Bitcoin reserve, proposing legislation to formalize the idea.
Earlier this month, Lummis proposed that the upcoming authorities promote a fraction of Federal Resreve’s gold to increase its Bitcoin holdings. At the same time, Pennsylvania launched a bill to allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.
Most fair lately, investment management agency VanEck also joined the Bitcoin Reserve campaign. The company is actively endorsing BTC’s adoption as a state or national reserve asset. VanECK’s Bitcoin ETF HODL at the moment holds a obtain asset of $1.29 billion.
Overall, Vancouver’s exploration of Bitcoin aligns with a broader pattern of governments and institutions serious about the cryptocurrency as part of their financial frameworks.
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