Citing the fiat inflation recorded in recent years, the mayor of Vancouver, Canada, urges the city council to explore Bitcoin’s (BTC) potential. The mayor, Ken Sim, recommends integrating Bitcoin with municipal financial strategies to safeguard the city’s fiscal health. Given that, he has proposed a motion he will present in the council meeting on Dec. 11.
The motion is “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.” The document addressed the reputation Bitcoin has built since its inception and how it strengthened many jurisdictions against currency devaluation and inflation.
The document mentioned El Salvador, Pennsylvania, Zug and Lugano in Switzerland; the South Korean capital, Seoul and several African villages benefited from adopting the financial technology.
The proposed motion reads,
The purchasing power of traditional fiat currencies through centralized monetary systems has faced increasing challenges in recent years…] As an open, decentralized, and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation…]
Bitcoin to back Vancouver’s purchasing power
Given the inflationary challenges in centralized fiat currency systems, which badly disrupted the city’s purchasing power, Sim suggested transitioning the financial reserve by including BTC.
He recommended receiving taxes and legal fees in BTC as part of making Vancouver a Bitcoin-friendly city. Similarly, the collection of BTC will strengthen the city’s purchasing power and fight against the “volatility, debasement, and inflationary pressures of traditional currencies.”
Interestingly, the Mayor has also requested to generate a report on Bitcoin-friendly City by the end of Q1 2025. The report will analyze the potential benefits of featuring Bitcoin, risks and feasibility.
Sim has been an initial supporter of the crypto ecosystem and intends to leverage the virtual assets for public benefit. He accepted crypto donations during his mayoral campaign in 2022.
