Vancouver's City Council has approved a groundbreaking motion to explore making the city "Bitcoin-friendly," including the possibility of holding Bitcoin as a reserve. The proposal, championed by Mayor Ken Sim, passed with support from his ABC Vancouver councillors while facing opposition from Green Party representatives.
The approved motion directs city staff to conduct a comprehensive analysis of potentially integrating Bitcoin into Vancouver's financial strategies. This could include accepting cryptocurrency for municipal taxes and fees, as well as converting a portion of the city's financial reserves into Bitcoin.
Demonstrating his commitment to the initiative, Mayor Sim announced a personal donation of $10,000 in Bitcoin to the city. "Our family totally believes in the benefits of this, and we're putting our money where our mouth is," stated Sim, who claims to have invested over 10,000 hours researching cryptocurrency.
However, the proposal faces several challenges. The Financial Consumer Agency of Canada describes cryptocurrencies as "very risky," noting their lack of regulation and vulnerability to fraud. Environmental concerns have also been raised, with researchers from the London School of Economics reporting that a single Bitcoin transaction generates carbon emissions equivalent to driving 1,600-2,600 kilometers.
Perhaps the most immediate obstacle is provincial legislation. The Ministry of Municipal Affairs has stated that local governments in British Columbia cannot hold financial reserves in cryptocurrency under current laws. Mayor Sim remains undeterred, suggesting that "governments have to catch up" with technological advancement.
City staff will prepare a detailed report examining the feasibility, risks, and potential benefits of the Bitcoin strategy by March 2025. The report will include input from financial advisors, crypto experts, and community stakeholders.
The motion comes as Bitcoin trades at record highs, though experts like UBC economics professor Werner Antweiler caution that cryptocurrency remains highly volatile, comparing its price swings to those of high-risk tech stocks.
This initiative positions Vancouver among a small group of municipalities worldwide exploring cryptocurrency adoption, following examples set by cities like Zug, Switzerland.