Vancouver Council votes to explore Bitcoin as a financial strategy

Vancouver city council has voted to explore the use of BTC in municipal finances, a significant step towards making the city “Bitcoin friendly”.

Mayor Ken Sim introduced the motion, which passed Wednesday with the strong support of six councilors. Two voted against and three were absent.

Vancouver to explore Bitcoin integration

The mayor’s initiative aims to explore Bitcoin as a potential safeguard against inflation and currency devaluation. In a statement, Sim, who is an investor in cryptocurrency exchange Coinbase, said the city needs to adapt to global financial changes, especially given its growing affordability crisis.

The city’s real estate market saw a staggering 381% increase in value between 1995 and 2022, while traditional assets such as gold and city stocks failed to deliver comparable returns. Instead, Bitcoin has offered substantial returns over the past decade, and Sim believes it could play a crucial role in stabilizing the city’s finances amid inflation and devaluation of the traditional currency.

In an interview with Canadian news channel Global News just before the vote, Sim was quoted as saying.

“Bitcoin has been the most profitable asset on the planet for the past 16 years, so not even looking to include it as part of a diversified portfolio is, I think, foolhardy.”

Sim’s motion calls for a report by the end of the first quarter of 2025 to assess the feasibility, risks and benefits of Bitcoin adoption. Despite the support, the proposal faced opposition from Councilor Pete Fry, who expressed concern about the potential for misuse of Bitcoin in criminal activities and its environmental impact due to the high consumption of mining energy.

To demonstrate his commitment, Sim has pledged to donate $10,000 in Bitcoin to the city, regardless of the outcome. He had said,

“Our family will be donating $10,000 to the city of Vancouver in the form of bitcoin and this will be a gift to the city we love. We fully believe in the benefits of this and are putting our money where our mouth is.”

Obstacles ahead

Although the motion has passed, there are challenges, especially with legal restrictions that prevent municipalities from holding cryptocurrency as reserves. The provincial government has also clarified that local authorities are not authorized to use Bitcoin for transactions or investments under current legislation.

Following the development, the Ministry of Housing and Municipal Affairs highlighted that existing provincial laws, including the Community Charter and the Vancouver Charter, prohibit the use of cryptocurrencies for municipal payments or transactions.

Local governments are also restricted from holding cryptocurrencies like Bitcoin in reserves, as legislation dictates that public funds can only be invested in approved low-risk options to ensure financial stability.

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