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Inflation: An enemy Vancouver wants to defeat with BTC
Towards a ‘Bitcoin-friendly city’: Ken Sim’s bet
As governments hesitate to embrace Bitcoin, some cities are leading the way. In Florida, pension funds are integrating BTC into their portfolios, and Vancouver appears to be following suit. A Canadian city led by Mayor Ken Sim is considering becoming a “Bitcoin-friendly city” to preserve purchasing power in the face of inflation. An ambitious project presented to the city council could indeed make history.
Inflation: An enemy Vancouver wants to defeat with BTC
Bitcoin news : In the face of rising inflation that is eroding the purchasing power of municipalities, Ken Sim proposes an innovative yet bold response: the crypto of Satoshi Nakamoto. According to him, the volatility of fiat currencies requires the diversification of the city’s financial reserves.
https://twitter.com/Cointelegraph/status/1864569142986285465
His idea? To allocate some of Vancouver’s financial resources to BTC to counter the devaluation of the Canadian dollar.
The Mayor highlighted several concrete advantages:
Protection of public finances against fluctuations in traditional currencies;
Protecting taxpayers and ensuring that their taxes do not melt away like snow in the sun;
Openness to innovation to attract crypto companies and boost the local economy.
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In his report to the council, he cites examples of international successes that have already taken this step, such as El Salvador or Lugano. “Bitcoin is not just a currency; it is a shield against economic uncertainty,” Sim said, while acknowledging that a comprehensive study is still needed to assess the risks and opportunities of such a shift.
Towards a ‘Bitcoin-friendly city’: Ken Sim’s bet
Embracing Bitcoin doesn’t just mean buying crypto. For Vancouver, it could also include accepting municipal payments like taxes or administrative fees in BTC. It’s a revolution based on a tangible proposition: developing a comprehensive framework for the flagship cryptocurrency to be securely stored and converted to fiat when needed.
BTCUSD chart by TradingView
The proposed strategy also includes engaging local residents and businesses. “This approach is collective: it’s not just about diversification, it’s about preparing Vancouver for a more robust financial future,” Sim emphasized.
The mayor is scheduled to present a detailed report in the first quarter of 2025.
Excerpt from the councillors’ motion – Council meetings, City of Vancouver. Source: Vancouver City Council
But some remain skeptical. Crypto advocates see it as an opportunity, while others fear risks related to volatility or unclear regulations, especially in Canada, where crypto assets are heavily regulated.
Finally, one thing is for sure: Justin Trudeau and cryptocurrencies are not well connected. For several years now, the Canadian government has been imposing stricter regulations on cryptocurrencies, hindering their adoption in an effort to exert more control.