A Bold Response To Inflation: The City Of Vancouver Considers BTC

As governments hesitate in the face of Bitcoin, some cities are taking the lead. In Florida, pension funds are already integrating BTC into their portfolios, and Vancouver seems to be following the trend. The Canadian city, led by its mayor Ken Sim, is considering becoming a “Bitcoin-friendly city” to preserve its purchasing power in the face of inflation. An ambitious project, presented to the city council, could indeed make history.

Inflation: an enemy that Vancouver wants to defeat with BTC

The Bitcoin news: in the face of soaring inflation that erodes the purchasing power of municipalities, Ken Sim proposes a response that is as bold as it is innovative: the crypto by Satoshi Nakamoto. According to him, the volatility of fiat currencies necessitates diversifying the city’s financial reserves.

https://twitter.com/Cointelegraph/status/1864569142986285465

His idea? Allocate a portion of Vancouver’s finances to BTC to counter the devaluation of Canadian dollars.

The mayor highlighted several concrete advantages:

• Preservation of public finances against fluctuations in traditional currencies;
• Protection of taxpayers, 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.

In his report to the council, he cites examples of international successes like El Salvador or Lugano, which have already taken the plunge. “Bitcoin is more than just a currency; it is a shield against economic uncertainty,” Sim stated, while acknowledging that a thorough study is still needed to assess the risks and opportunities of such a shift.

Towards a “Bitcoin-friendly city”: Ken Sim’s bet

Adopting bitcoin doesn’t just mean buying crypto. For Vancouver, it could also include accepting municipal payments in BTC, such as taxes or administrative fees. A revolution based on a concrete proposal: to develop a comprehensive framework for the secure storage of the flagship crypto and its conversion into fiat money as needed.

The proposed strategy also involves engaging local residents and businesses. “This approach is collective: it is not just about diversifying, but about preparing Vancouver for a more robust financial future,” emphasized Sim.

The mayor plans to provide a detailed report in the first quarter of 2025.

Some, however, remain skeptical. While crypto advocates see it as an opportunity, others fear risks related to volatility or uncertain regulation, especially in Canada, where crypto-assets are subject to stringent oversight.

Finally, one thing is certain: between Justin Trudeau and cryptocurrencies, the connection is not good. For several years, the Canadian government has imposed stricter regulation on crypto, hindering its adoption in an effort for increased control.