Vancouver is the latest city to join the discussions on adding Bitcoin to the government’s financial reserves. At a city council meeting on November 26th, Mayor Ken Sim submitted his notice of motion, where he plans to introduce his proposed Bitcoin bill on December 11th.

The city’s proposal is titled ” Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city. ” It aims to integrate Bitcoin into the city’s financial system and make Vancouver a “Bitcoin-friendly city,” using Bitcoin as a hedge against inflation and promoting economic development.

Vancouver Makes A Move Towards BTC Adoption

Vancouver Mayor Ken Sim is taking the necessary steps to prepare the city for the blockchain. As a Bitcoin supporter, Sim is pushing for widespread adoption to hedge against inflation and promote economic development. In a November 27th meeting, Mayor Sim filed a motion of notice detailing his plan to present the proposal to adopt Bitcoin on December 11th.

🇨🇦VANCOUVER, CANADA, MAYOR PUSHES FOR BITCOIN AS CITY RESERVE ASSET

Vancouver Mayor Ken Sim announced plans to make the city “Bitcoin-friendly,” proposing Bitcoin as part of its financial diversification strategy.

A formal motion, set for December, could see the city adopt… pic.twitter.com/TI2rlSgYpX

— Mario Nawfal (@MarioNawfal) November 27, 2024

Under the proposal, Vancouver will transform into a “Bitcoin City” and authorize the city government to diversify its resources to include Bitcoin. If the council approves, residents of Canada’s third-largest city can purchase Bitcoin.

However, it isn’t clear in the proposal if Sim also authorizes setting up a Bitcoin strategic reserve, similar to the one being pushed by US senator, Cynthia Lummis.

Bitcoin market cap currently at $1.88 trillion. Chart: TradingView.com

Mayor Sim And His Campaign For Bitcoin

Sim is one of the country’s most vocal supporters of Bitcoin. During the campaign, Sim’s party announced it would accept cryptocurrency donations. He explained that their commitment to blockchain technology demonstrates their plan to accept crypto as donations. He also teased the electorate that he will push for crypto-related policies if he wins.

Vancouver Mayor Ken Sim. Image: Chain Debrief

Sim became Vancouver’s mayor in October 2022. During his tenure as city mayor, he rarely gave speeches or talks on Bitcoin and cryptocurrencies. Interestingly, a book titled “The Bitcoin Standard” by Saifedan Ammous was seen in the mayor’s office during his interview with Global News on November 25th. Many observers pointed to this item in his office as evidence of the mayor’s interest in crypto.

Push For BTC Mainstream Adoption Intensifies

Today, Bitcoin continues to surge in price thanks to a growing mainstream adoption. Sim’s move to integrate Bitcoin into Vancouver’s financial system is just one of the many proposals reported recently. According to Jeff Booth, a blockchain author, Mayor Sim’s proposal aims to promote the adoption of Bitcoin as a reserve asset.

Aside from Vancouver, a few states and governments are working overtime to fast-track Bitcoin’s mainstream adoption. For example, the state of Florida plans to tap a portion of its pension funds and use it to buy crypto. Pennsylvania is also planning to set up a Bitcoin reserve. Then, there’s the city of Detroit, which teases a plan to accept Bitcoin as a payment option.

Featured image from DALL-E, chart from TradingView

Ken Sim, the mayor of Vancouver, has proposed exploring Bitcoin as part of the city’s financial strategy. He suggested that a Bitcoin reserve would help the city diversify its financial resources. 

The mayor announced plans to formally introduce a motion for this Bitcoin reserve on Dec. 11. 

More States are Inclining Towards a National Bitcoin Reserve

According to the mayor, Vancouver aims to become a Bitcoin-friendly city. The motion will focus on assessing whether Bitcoin could serve as a hedge against economic instability. 

Sim’s political group, A Better City, previously caught the crypto community’s attention in April 2022 by accepting cryptocurrency donations.

“Vancouver is officially the most Bitcoin-friendly city in North America. Biggest 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 government level continues to grow. El Salvador led the way in 2021 by making Bitcoin legal tender. According to Trading Economics, the country’s gross domestic product (GDP) rose from approximately $29 billion in 2021 to over $34 billion in 2023.

However, 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 concept. 

Earlier this month, Lummis proposed that the upcoming government sell a portion of Federal Resreve’s gold to increase its Bitcoin holdings. At the same time, Pennsylvania introduced a bill to allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.

Most recently, investment management firm 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 currently holds a net asset of $1.29 billion. 

Overall, Vancouver’s exploration of Bitcoin aligns with a broader trend of governments and institutions considering the cryptocurrency as part of their financial frameworks.

A well-known gold advocate denounced MicroStrategy’s investment plan to purchase more Bitcoin and build up its crypto reserve.

Peter Schiff, a vocal critic of the firstborn cryptocurrency, also slammed the pro-crypto stance of President-elect Donald Trump, arguing that it is detrimental to the country.

MicroStrategy’s Bitcoin Investment Strategy

MicroStrategy revealed that it has a $42 billion investment strategy to buy more Bitcoin in the next few years.

Analysts said that the American development company is known for purchasing a great deal of cryptocurrency regardless of market fluctuations.

Reports stated that MicroStrategy recently bought 55,500 BTC worth $5.4 billion, allowing the company to strengthen its position in the crypto sector.

As of press time, MicroStrategy owns 386,700 BTC worth over $36 billion, putting the firm among the biggest corporate holders of cryptocurrency.

A Dangerous Bet

Schiff criticized MicroStrategy’s continuous purchase of the digital asset, denouncing the $42 billion investment plan to acquire more Bitcoin within three years.

The Bitcoin critic described MicroStrategy’s BTC investment plan as “a dangerous bet.”

It’s now been four weeks since $MSTR announced its three-year plan to spend $42 billion buying #Bitcoin. MSTR has already spent $10 billion. At this rate, the three-year plan will be completed in about 16 weeks. Once the buying is done, expect both Bitcoin and MSTR to crash.

— Peter Schiff (@PeterSchiff) November 26, 2024

“At this rate, the three-year plan will be completed in about 16 weeks,” Schiff said.

He sees the price hike brought by what is called MicroStrategy’s “bold plan” will be short-term, leading to a considerable decline in BTC price and a drop in the company’s stock price.

Moreover, Schiff believes that the company’s large-scale purchase only brings an artificial price appreciation, noting that it may pose a problem to the firm because it put all its proverbial eggs in one basket which is not a smart concept in any investment.

BTC market cap currently at $1.88 trillion. Chart: TradingView.com

Schiff predicts that MicroStrategy might not be able to fund future purchases of Bitcoin, echoing his view that this move could possibly hurt both the company and its shareholders.

On the other hand, MicroStrategy executive Michael Saylor defended the company’s investment approach, saying that they have no plan of selling their crypto assets in the near future.

Image: ETMarkets.com

Saylor said that the company remains bullish on the future of BTC, urging other companies to draw inspiration from their investment strategy.

Historically, Schiff has been a staunch critic of MicroStrategy’s moves to buy Bitcoin.

Trump’s Pro-Crypto Stance: Detrimental To The Economy?

Schiff also criticized Trump in his plans to implement regulations that are pro-cryptocurrency, arguing that it will weaken the country’s economic standing.

“When the government picks winners and losers, it usually picks losers. Thanks to the Trump administration’s picking bitcoin, Wall Street is winning big by misallocating capital to BTC and related value-destroying businesses,” Schiff stated.

The staunch crypto critic believes that the US would become weaker once it became a Bitcoin superpower.

Meanwhile, crypto advocates dismissed Schiff’s opinions, saying that it is among the dumbest posts ever.

Featured image from FXLeaders, chart from TradingView