Vancouver’s city council will soon debate a proposal by Mayor Ken Sim to integrate Bitcoin into municipal finances. Scheduled for 11 December, the motion seeks to diversify financial reserves and explore options such as accepting taxes and fees in Bitcoin or converting a portion of the city’s reserves into digital currency. Sim’s ABC Vancouver party holds a council majority, making the proposal likely to pass.
The initiative highlights Bitcoin’s potential to protect purchasing power from inflation and promote innovation. Vancouver, known as a crypto-friendly hub since hosting the world’s first Bitcoin ATM in 2013, would join other jurisdictions like El Salvador and Switzerland’s Zug in embracing Bitcoin. However, some critics point to environmental concerns tied to Bitcoin mining and British Columbia’s existing moratorium on new mining projects due to electricity usage.
Mayor Sim, an outspoken Bitcoin advocate, described the cryptocurrency as a revolutionary invention during a recent interview. While the motion has sparked debate, legislative hurdles remain, as neither Vancouver’s nor British Columbia’s charters currently permit the use of cryptocurrency for municipal services.
The Central Bank of Chile has firmly rejected Bitcoin as a national reserve asset, citing regulatory and practical challenges. According to the institution, Bitcoin fails to meet the International Monetary Fund’s standards for reserve assets, which demand security, liquidity, and reliability. Legal restrictions further limit the bank’s reserves to traditional assets like gold and government-backed securities.
Officials emphasised that reserve assets must provide stability during economic stress, a requirement Bitcoin’s volatility does not satisfy. The bank also pointed out technical hurdles in integrating cryptocurrency with its existing systems, reinforcing its preference for conventional financial tools.
Chile’s cautious stance diverges sharply from neighbouring Brazil, where lawmakers are considering legislation introducing strategic Bitcoin reserves. As global debates on cryptocurrency adoption continue, Chile remains committed to its conservative financial policies, prioritising stability over experimentation with digital assets.
At the Investment Forum in Moscow on 4 December, Russian President Vladimir Putin hailed Bitcoin and digital currencies as essential for reducing financial inefficiencies and increasing economic stability. He argued that cryptocurrencies like Bitcoin provide an alternative to the US dollar, which he criticised for being used by the US government to push its political agendas.
Putin pointed to Russia’s $300 billion in frozen reserves, highlighting how this has led many countries to explore safer alternatives like Bitcoin. He emphasised that no one can ban Bitcoin, asserting that these technologies will inevitably evolve as nations seek to lower costs and improve reliability.
Russia has already taken significant steps in embracing cryptocurrencies, with new legislation recognising them as property and offering tax relief for crypto transactions. It signals Russia’s intent to foster innovation and protect its financial system from external pressures.
Putin’s comments align with broader discussions within BRICS nations about using digital currencies for cross-border payments, further challenging traditional financial systems and solidifying crypto’s role on the global stage.
The Federal Reserve Chairman, Jerome Powell, has described Bitcoin as a competitor to gold, citing its role as a tool for preserving value rather than a mainstream currency. Referring to Bitcoin as ‘digital gold,’ Powell noted its volatility and clarified that it poses no threat to the dollar, instead competing with gold in its niche.
Powell expressed concerns about the crypto industry’s integration with traditional banking systems, stressing the need for adequate supervision and consumer protection. While the Federal Reserve does not directly regulate digital assets, Powell emphasised the importance of safeguarding investors across the growing crypto sector.
Despite Bitcoin’s growing prominence, Powell disclosed he does not personally hold any cryptocurrency. Meanwhile, Donald Trump’s administration has taken a bold stance on Bitcoin, proposing measures like the Bitcoin Strategic Reserve to address economic challenges. The Republican party continues to push for supportive legislation, such as the BITCOIN Act, aiming to cement Bitcoin’s place in the financial landscape.
As France grapples with political uncertainty following a no-confidence vote on its budget, the financial world has been captivated by Bitcoin’s historic surge past $100,000. President Macron faces the challenge of stabilising a government without a clear parliamentary majority, while the budget deficit has swelled to 6% of GDP. The crisis has prompted fears of long-term risks to the nation’s financial health, but markets have remained largely calm for now.
Meanwhile, Bitcoin’s remarkable rally has stolen the spotlight. The appointment of Paul Atkins as the new head of the US Securities and Exchange Commission has sparked optimism in the crypto world. Known for his deregulatory stance, Atkins is expected to adopt a more favourable approach to cryptocurrencies, fuelling the digital asset’s meteoric rise.
While Bitcoin’s rally marks a pivotal moment in its bull market, France’s political woes raise questions about its fiscal future. With bond markets stable for now, the next test will be whether a new government can address the budget deficit without spooking investors. The intersection of political and financial upheavals across Europe underscores the fragile balance between traditional and emerging markets.
Bitcoin has reached a record-breaking $100,000, marking a pivotal moment in its journey towards mainstream financial acceptance. The surge follows Donald Trump’s election as US president, sparking hopes of a pro-crypto regulatory environment. Since his victory, Bitcoin’s value has climbed by 45%, driven by institutional investment in Bitcoin-backed exchange-traded funds (ETFs).
This milestone highlights Bitcoin’s evolving legitimacy in the global financial system, attracting attention from both retail and institutional investors. Analysts have called the $100,000 mark a psychological and symbolic benchmark, reflecting the cryptocurrency’s growing appeal as a potential store of value.
Despite the optimism, experts urge caution. Sarah Streeter, Head of Money and Markets at Hargreaves Lansdown, emphasised that while crypto may play a role in future finance, regulatory uncertainties and market risks persist. Investors are advised to treat Bitcoin as a high-risk asset and limit exposure to manageable levels.
As institutional adoption accelerates, the spotlight remains on how Bitcoin navigates challenges like regulation and volatility. Whether this historic achievement signals a new phase of stability or remains a volatile ascent is a question only time will answer.
Virgin Voyages has made history by becoming the first cruise line to accept Bitcoin for payments. The cruise line, founded by Sir Richard Branson, now allows customers to use the leading cryptocurrency to purchase its recently launched Annual Pass. Priced at $120,000, the pass secures a spot on a sea terrace for an entire year and offers various exclusive perks.
This step marks a pivotal shift for the company as it embraces the growing influence of digital finance. Branson’s Virgin Galactic was one of the first companies to accept Bitcoin back in 2013 for future space travel. With this latest announcement, Virgin Voyages signals its commitment to innovation in the travel industry.
The move aligns with a broader trend in 2024, a year that has seen increased adoption of Bitcoin across various sectors. As the cryptocurrency continues to gain regulatory acceptance and reach new milestones, more companies are likely to follow Virgin Voyages in integrating Bitcoin into their payment systems.
The US government has transferred nearly $2 billion worth of Bitcoin from its Silk Road seizure to Coinbase, according to blockchain analytics firm Arkham Intelligence. A total of 19,800 Bitcoin, initially moved to an intermediary wallet, were ultimately sent to two Coinbase wallets at a transaction cost of just $3.34.
Silk Road, a notorious dark web marketplace used for illegal transactions, was shut down in 2014. Some of the seized Bitcoin had been stolen by James Zhong, who exploited a vulnerability in 2012 to amass 50,676 BTC. Authorities confiscated his holdings in 2022, marking one of the largest Bitcoin seizures in history.
Bitcoin prices fell by over 2% following the news, now standing at $95,250. Market reactions often stem from fears of a potential sell-off when the government moves significant amounts of cryptocurrency. However, Coinbase Prime’s contract with the US Marshals Service to manage these assets suggests an immediate sale may not occur.
Michael Saylor, Executive Chairman of MicroStrategy, urged Microsoft to adopt Bitcoin as a strategic reserve during a presentation to the company’s board on 1 December. He emphasised Bitcoin’s potential to become the world’s leading asset within 20 years, surpassing gold and art with a projected global wealth share of $280 trillion. Highlighting Bitcoin’s rapid growth, Saylor noted its annual performance has outpaced Microsoft shares by 12 times, with MicroStrategy shares soaring over 3,000% since embracing Bitcoin.
In his pitch, Saylor framed Bitcoin as a vital asset for Microsoft’s future, claiming it could reduce investor risk while driving share prices to $584 and maximising market capitalisation to nearly $5 trillion. He contrasted Bitcoin’s benefits with traditional financial strategies, urging the board to innovate by adopting the cryptocurrency.
Saylor also introduced Bitcoin24, a product designed to integrate Bitcoin into corporate strategies. He argued that this approach could lower Microsoft’s share risk from 95% to 59% and increase annual recurring revenue from 10.4% to 15.8%. As political and market support for Bitcoin grows, Saylor asserted that Microsoft’s adoption of Bitcoin would secure its position in the digital future.
The Russian Central Bank claims it is making significant progress in tackling peer-to-peer cryptocurrency exchanges. According to a recent financial stability review, the regulator states that high-risk transactions have dropped by 2.8 times compared to 2023. Efforts to combat illegal crypto circulation have involved close collaboration with commercial banks, leading to numerous blocked transfers tied to P2P platforms.
The Russian crypto market remains unregulated and fragmented despite tighter measures, with underground exchanges using fictitious accounts for settlements. While the Central Bank reports a 16 per cent decrease in Russians’ estimated crypto wallet balances since March, the overall volume of crypto transactions involving Russian investors has risen by 18 per cent in 2024.
The bank noted increased interest in global crypto platforms, with web traffic from Russian IPs soaring by over 56 per cent this year. Bitcoin remains the dominant choice for Russian holders, accounting for 69 per cent of wallet balances. Despite regulatory pressure, Russian traders continue to anticipate long-term growth in cryptocurrency values, driven by policy shifts in the US and trends like meme coins.
