(Kitco News) – The pace of companies and countries adopting Bitcoin (BTC) as a strategic reserve asset is starting to gain steam, prompting many lawmakers to consider following suit, including Vancouver Mayor Ken Sim, who recently announced plans for the Canadian city to add Bitcoin to its balance sheet as part of efforts to diversify its investments.
Ken Sim has served as the mayor of Vancouver since 2022, and while he has fulfilled 70% of the 94 points laid out in his campaign since taking office two years ago, his latest proposal faces an uphill battle.
During the Vancouver city council meeting on Tuesday, Mayor Sim submitted a notice of motion he intends to introduce on Dec. 11 titled “Preserving of the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city.”
According to Bitcoin proponent and author Jeff Booth, the motion from Mayor Sim is intended to have Vancouver adopt BTC as a reserve asset.
Discussions about adopting Bitcoin as a strategic reserve asset have been rising since the concept was first mentioned by Trump on the campaign trail. These efforts have been aided by MicroStrategy founder and Chair Michael Saylor, who has engaged with various companies over the years and pitched the benefit of holding Bitcoin in their treasuries.
Following Trump’s re-election in early November, lawmakers in both the Pennsylvania House of Representatives and the US Senate have put forward plans to have the government hold Bitcoin as a reserve asset.
On Monday, Brazil Congressman Eros Biondini proposed a bill to establish a sovereign federal Bitcoin Reserve – dubbed RESBit – potentially reshaping the country’s approach to digital assets.
According to the bill, the Bitcoin reserve could shield the country’s sovereign reserve from currency fluctuations and geopolitical risks while also serving as collateral for the country’s forthcoming central bank digital currency, the Real Digital (Drex).
Under the proposed legislation, the BTC reserve would complement existing financial assets up to a maximum of 5% of the country’s reserves through phased purchases. The Central Bank of Brazil would still manage the assets through public systems powered by blockchain and artificial intelligence technologies, with the support of a technical advisory committee formed by security experts.
The bill is now under review by the Speaker of Brazil’s House of Representatives and will be directed to committees for debate upon approval.
On the corporate side, the number of companies holding BTC on their balance sheet has also started to swell, with Canadian wellness and plant-based e-commerce firm Jiva Technologies becoming the latest adopter after announcing that their board of directors has approved up to $1 million in BTC investments.
On Monday, MicroStrategy announced they had acquired an additional 55,000 Bitcoin for $5.4 billion, boosting their holdings to 386,700 BTC amid bullish institutional sentiment. That same day, video-sharing platform Rumble announced they also plan to add Bitcoin to their corporate balance sheet, with its board of directors approving the strategy and allocating up to $20 million of the company’s excess cash reserves to BTC.
It’s currently unclear whether these efforts played a role in Mayor Sim’s motion as they happened at roughly the same time, but the building trend likely had some influence. Sim established his pro-crypto leanings during his campaign for Mayor after his political party, A Better City, announced that it would accept crypto donations.
At the time, Sim said the move was to “demonstrate [the party’s] commitment to technology,” suggesting that he would utilize cryptocurrency in city hall if elected. However, since his October 2022 election, his public statements regarding the adoption of Bitcoin and cryptocurrency have been minimal.
At the time of writing, Sim’s motion has yet to appear on the city government’s website, and his office has not responded to a request for comment. It remains to be seen whether Sim’s proposed motion will garner enough support to pass in the Vancouver City Council.
