Vancouver Mayor Ken Sim Proposes Adding Bitcoin (BTC) to the City's Balance Sheet

In recent Bitcoin related news, Vancouver Mayor Ken Sim has proposed adding BTC to the city's balance sheet to diversify investments.

Vancouver Mayor Ken Sim is proposing that the city add Bitcoin to its balance sheet, making it the latest government to consider the cryptocurrency as a reserve asset.

The proposal, which will be formally presented on December 11, is part of an effort to diversify the city’s investments and preserve its purchasing power.

“We need to be thinking about the future and how we can best protect our city's finances,” Sim said in a statement. “Adding Bitcoin to our balance sheet is a strategic move that will help us to do just that.”

The city’s move comes as corporations and governments begin to embrace Bitcoin as a hedge of sorts against inflation and geopolitical risk.

MicroStrategy and Brazil are among the global entities that are already looking at Bitcoin as a reserve asset — and if Vancouver passes this proposal, it could open the door for other cities and countries to follow suit.

The proposal, titled “Preserving the City’s Purchasing Power Through Diversification of Financial Resources: Becoming a Bitcoin-Friendly City,” will be presented to council for a vote on December 11. If passed, it would direct city staff to develop a framework for the integration of Bitcoin into the city’s financial strategy.

The framework would include recommendations on the amount of Bitcoin to be acquired, the method of acquisition, the custodian to be used, and the legal, regulatory, and accounting considerations involved in holding Bitcoin as a reserve asset.

The proposal also includes a provision that would require the city to hold Bitcoin for a minimum of five years, and it would prohibit the city from selling or disposing of Bitcoin without the approval of council.

The move by Vancouver would be significant, as it would mark the first time that a major city has adopted Bitcoin as a reserve asset. However, the proposal is also likely to face some opposition, given the volatility of cryptocurrency prices and the regulatory uncertainty surrounding cryptocurrencies.

If Vancouver does ultimately decide to add Bitcoin to its balance sheet, it would join a growing list of institutions that are using cryptocurrency as a reserve asset.

Institutions such as MicroStrategy and the Baltimore Ravens are among those that have already taken this step, and their experiences could provide valuable lessons for Vancouver as it considers its own options.