Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Vancouver’s Bitcoin Vision: A New Era for City Finances
Crypto | Dec 10, 2024
Image: Freepik/TravelScape
Is Bitcoin Becoming the Reserve Asset of the Future?
Is Vancouver about to lead the Bitcoin revolution in Canada? The Mayor of Vancouver Ken Sim (elected on October 15, 2022) announced that the city should use Bitcoin as part of the city's financial reserves in a proposal titled, “Preserving the City’s Purchasing Power Through Diversification of Financial Resources”. Sim's idea comes at a time when the Canadian dollar is losing value because of inflation and other economic pressures. He wants to protect the city's money from inflation and economic uncertainty by making Vancouver a Bitcoin-friendly city while also positioning it as a hub for financial innovation. The city council plans to discuss on December 11, 2024.
What’s the Plan?
The proposal goes beyond just holding Bitcoin in the city’s reserves, and outlines a comprehensive plan to make Vancouver a “Bitcoin-friendly city”:
- Residents could get the option to pay taxes and city fees using Bitcoin.
- Embracing Bitcoin could bring new businesses to the city and create jobs in crypto and blockchain.
- The city will engage the public by talking to experts, local businesses, and residents to ensure any decisions are informed and transparent.
Why is Vancouver Talking About Bitcoin?
Bitcoin is often referred to as a store of wealth or 'digital gold' (among other things). Unlike traditional money, Bitcoin has a fixed supply and operates on a decentralized network, so no one can print more of it. Bitcoin has been the top performing financial asset over the past decade with an average annual return of 230%, surpassing all other asset classes by a significant margin. Massive investment companies like BlackRock, Fidelity, and Deutsche Bank are already invested in Bitcoin and see bitcoin as a long term store of value. The proposal argues that Vancouver should join cities and countries around the world that are exploring Bitcoin to stay ahead of the curve.
See: Bitcoin Hits $100K, Pizzas Now Worth $1 Billion!
Ken Sim, Mayor of Vancouver:
“We need to think about the future. [Bitcoin is] the greatest invention in human history.”
From city halls in Canada and the powers that be in the United States and beyond, leaders are debating if Bitcoin could play an important role in hedging economies against uncertainty. Globally, countries are looking at how Bitcoin might fit into their financial strategies. To name just a few:
- Some United States policymakers including President-elect Donald Trump and Senator Cynthia Lummis are pushing for a national Bitcoin reserve. Lummis’ proposal would convert some government gold reserves into Bitcoin and acquire up to one million Bitcoins over five years. While Elon Musk sounds the alarm about America's unsustainable $35 trillion debt, advocates of a national bitcoin reserve argue the move could help reduce the national debt, strengthen the dollar, and counter economic threats from competing nations like China and Russia.
- El Salvador was the first country to adopt Bitcoin as legal tender. They built a national Bitcoin reserve of over 5,900 coins which is now valued at more than $600 million, and see Bitcoin as a tool to boost financial inclusion and reduce reliance on traditional currencies. Yet the IMF wants El Salvador to scale back its Bitcoin dreams to unlock a $1.3 billion loan.
- In Switzerland, Bitcoin advocates are pushing for the Swiss National Bank to include Bitcoin in its reserves. They are aiming to change the constitution by a referendum that requires 100,000 signatures to proceed.
See: UK vs. Canada: A Tale of Two Different Crypto Consumers
- Bhutan quietly built a significant Bitcoin reserve through mining operations powered by hydroelectric energy, now worth $750 million or approx 27.9% of it's 2023 GDP. They are aiming to become a leader in sustainable Bitcoin mining.
- Lugano, Italy, launched Plan ₿, an initiative to integrate Bitcoin into daily life and transform the city’s financial infrastructure. Residents and businesses can use Bitcoin to pay for municipal services, taxes, and even small purchases. Lugano wants to be a blockchain innovation hub to boost the local economy and promote global cryptocurrency adoption.
- Brazilian lawmakers are considering a proposal to invest 5% of national reserves ($18.6 billion) in Bitcoin with the goal of diversifying financial assets and protecting against global risks.
Skeptics Speak Out
Critics are quick to point out Bitcoin's volatility and question whether it's a safe choice for public funds. Ex-U.S. Treasury Secretary Lawrence Summers has called the idea of a national Bitcoin reserve “crazy”, saying Bitcoin is too volatile and lacks the utility of assets like oil or gold. Summers believes that to manage the countries burgeoning debt the U.S. should focus on tax form and budget adjustments instead of betting on crypto.
“Why would the government choose to support a bunch of Bitcoin?” - Summers
See: Marathon Bitcoin Miner Ventures into Whisky Barrels
Closing Outlook
As the global conversation around Bitcoin as a reserve asset is heating up, Vancouver's Mayor Ken Sim is positioning the city as a key player. But it also raises questions about risk, volatility, and public trust.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply