Ken Sim, mayor of Vancouver since 2022, recently announced a plan to use Bitcoin as a reserve asset. The proposal was presented during the municipal council meeting on November 26, under the title “Preserving the city’s purchasing power through diversification of financial resources: becoming a Bitcoin-friendly city.” Currently, this meeting is available on the city government’s official website.
The initiativescheduled to be formally presented on December 11, seeks diversify Vancouver’s assets and protect its purchasing power. At the moment it is not clear if it will have the necessary support to obtain approval from the city council.
Jeff Booth, entrepreneur, investor and enthusiast bitcoinauthor of the book “The Price of Tomorrow: Why deflation is the key to a prosperous future,” analyzed Mayor Sim’s proposal in a chat shared on social network X. In it, he described the initiative as a project for Vancouver to adopt bitcoin as a reserve assetaligning with the proposals of several local governments in the United States.
In Florida, for example, the head of the Office of Finance, Jimmy Patronis, asked the State Board of Administration (SBA) for a report on the risks and advantages of investing a part of the state retirement system in bitcoin. On the other hand, in Pennsylvania a bill was presented law for the state to hold BTC as a reserve assetinformation that was confirmed by Dennis Porter, CEO of the Satoshi Act Fund. Both cases were reported by CriptoNoticias.
Recently, Dennis Porter revealed that, thanks to the intervention of his team, the Texas congressmen have begun to discuss the possibility of using bitcoin as a strategic reserve to nourish the state’s finances. These cases are aligned with the campaign promises of the newly elected president Donald Trump, who express last July his intention to keep 200,000 bitcoin as a strategic reserve.
It should be noted that, while he was campaigning, the political group to which Mayor Ken Sim belongs, A Better City, accepted donations in cryptocurrencies. In April 2022, the party’s website published a Cryptocurrency-donations/” target=”_blank” rel=”noreferrer noopener”>release in which it stands out: «Vancouver is a leader in emerging technology. “Web 3.0 offers a unique opportunity to transform the city economy and identify innovative ways to deliver services in a more efficient and profitable way.”
Despite having shown his closeness to cryptocurrencies during his campaign as a candidate, Mayor Sim had not publicly promoted the adoption of bitcoin or other crypto assets since taking office. However, in a interview with the Global News media, a copy of the book could be seen «The Bitcoin Pattern: The Decentralized Alternative» by Saifedean Ammous, considered one of the most important texts on the role of digital currency in the future of money.
It is worth noting that Saifedean Ammous, advisor to the government of El Salvador on issues related to bitcoin, has been critical on the idea that the United States could adopt a strategic reserve of BTC. According to Ammous, Donald Trump’s proposal during his campaign is simply an “empty promise.” The economist argues that the Federal Reserve (Fed), a group of private banks, has significant control over the dollar and will not allow bitcoin to challenge this power. In fact, Ammous maintains that the purchase of bitcoins, against the will of the Fed, would be a direct confrontation with the current fiat monetary system and its debt structure, something that politicians are not willing to do.
In contrast to Saifedean Ammous, Zack Shapiro, advisor on cryptoasset and fintech issues, think that the creation of A strategic bitcoin reserve could strengthen the US dollar. According to Shapiro, the United States is currently facing a record national debt of $35 trillion, so by adding bitcoin to the country’s reserves, the government would send the message that it is committed to fiscal balance without sacrificing innovation. This would help strengthen the dollar’s position as the world’s reserve currency.
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