Vancouver Mayor Ken Sim has proposed a motion to adopt Bitcoin as a reserve asset, aiming to preserve the city's purchasing power through diversification of financial resources.

The proposal, titled 'Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city,' is set to be formally introduced to the Vancouver City Council on December 11, 2024.

This initiative comes as Bitcoin's value has recently surged, with its price increasing by 1.48% to $94,944, contributing to significant monthly and yearly gains.

Support for Bitcoin as a reserve asset is gaining traction, with figures like former CFTC Chairman Christopher Giancarlo endorsing its potential to provide long-term financial stability.

The trend of governmental adoption of Bitcoin is growing, exemplified by El Salvador's decision to make Bitcoin legal tender in 2021, which has led to notable GDP growth.

Vancouver is positioning itself as a Bitcoin-friendly city, already leading North America in Bitcoin meetups and merchants per capita, as highlighted by local crypto entrepreneur Julian Figueroa.

Sim's motion may be influenced by broader discussions in the U.S. regarding the establishment of a Bitcoin reserve, particularly following the recent elections.

Despite the enthusiasm surrounding the proposal, it remains uncertain whether it will garner sufficient support within the Vancouver City Council due to potential concerns over cryptocurrency volatility.

The motion has sparked considerable interest within the crypto community, although it has not yet appeared on the Vancouver city government's website as of late November 2024.

This proposal marks a significant shift in Vancouver's approach to cryptocurrency, as the city had not committed to substantial pro-crypto policies until now.

Sim has a history of supporting cryptocurrency, having accepted crypto donations during his 2022 mayoral campaign, but he has not publicly focused on Bitcoin since taking office.

The initiative reflects a global trend of governments exploring Bitcoin as a viable asset, influenced by recent shifts in sentiment towards Bitcoin reserves.