- Vancouver Mayor Ken Sim has proposed Bitcoin as a reserve asset to protect purchasing power.
- Jeff Booth supports Ken Sim’s proposal, recognizing Bitcoin’s potential as a strategic asset.
- Former US CFTC Chairman Giancarlo defends Bitcoin holdings, comparing them to gold.
Vancouver Mayor Ken Sim has announced a bold proposal to leverage Bitcoin as the city’s reserve asset to diversify its financial resources and protect its purchasing power.
The motion, titled “Preserving the City’s Purchasing Power through Diversification of Financial Resources: Becoming a Bitcoin-Friendly City,” will be formally presented to Vancouver City Council on December 11, 2024. This proposal marks a significant shift towards cryptocurrency adoption. by major city governments.
Protect Vancouver from economic shock using Bitcoin
Mayor Sim wants to explore how adding Bitcoin to the city’s reserves could help protect Vancouver from economic volatility and inflation.
This comes amid growing interest in Bitcoin as a government reserve asset, especially in the United States. Several US lawmakers have recently proposed holding Bitcoin in public financial reserves, highlighting the growing consideration of cryptocurrencies in national economic strategies.
The full text of the proposal has not yet been made public, but Bitcoin advocate Jeff Booth expressed support for Mayor Sim’s plan during a debate on X Spaces on November 26, 2024. Booth said this agreement highlights the potential of Bitcoin as a strategic financial asset for the city.
Former CFTC Chairman Supports Bitcoin Holdings in the United States.
Meanwhile, Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), has been vocal about Bitcoin’s potential as a strategic reserve asset for the United States.
In a recent interview, Giancarlo referred to Bitcoin as “the world’s first digital commodity,” pointing out that Bitcoin is similar to traditional commodities such as gold, oil, and copper that countries have historically stockpiled. He praised the idea of a national Bitcoin reserve, highlighting its potential to provide long-term financial stability in an increasingly digital economy.
Giancarlo also acknowledged concerns about the speculative nature of Bitcoin, but drew parallels with the dot-com bubble, where early-stage speculation led to technological innovations that revolutionized the industry. He believes the same evolution can happen with blockchain and Bitcoin technology and could be a forward-thinking move for governments and financial institutions.