Important points
Vancouver City Council has approved a motion to make the city “Bitcoin friendly.” Mayor Sim has advocated for Bitcoin as a way to protect the city's purchasing power from inflationary pressures.
Share this article
Vancouver City Council has given the green light to a proposal to consider incorporating Bitcoin into city finance operations, including the possibility of holding Bitcoin as a reserve asset and accepting it for payments.
The motion, introduced by Mayor Ken Sim, was passed with the support of six councilors at Wednesday's City Council meeting, effectively ordering city staff to consider the feasibility of making Vancouver a “Bitcoin-friendly city.” instructed.
Mayor Sim, who owns shares in Coinbase Global, believes that adopting Bitcoin as part of the city's fiscal strategy will help protect the city's purchasing power from inflation. He pledged to donate $10,000 worth of Bitcoin to the city.
“Our family will be donating $10,000 to the City of Vancouver in the form of Bitcoin. This will be a gift to the city we love,” he said during the meeting. “We fully believe in this benefit and are willing to put our own money behind it.”
The proposal faces opposition from local experts and government officials due to Bitcoin's price volatility.
The Ministry of Housing and Local Government said neither the Community Charter nor the Vancouver Charter recognize virtual currencies as payment for “municipal services or other transactions.” The ministry also confirmed that local governments cannot hold financial reserves in digital assets.
Green councilor Pete Fry, who opposed the motion, raised concerns about illegality.
“I don't think this is a step in the right direction unless there is some really concrete recognition of the very serious issues surrounding money laundering and the history of this city,” he said.
City staff are now tasked with analyzing this initiative and submitting a detailed report by the end of the first quarter of 2025 that considers the risks, benefits, and practical considerations of Bitcoin asset management. The plan includes consultation with financial advisors, cryptocurrency experts, and community stakeholders.
Since Donald Trump's election victory, the movement to adopt Bitcoin has increased. President Trump has expressed his intention to create a more favorable regulatory environment for the cryptocurrency industry.
This trend is now expanding globally, with debates over strategic Bitcoin reserves attracting attention among lawmakers in other countries. Last month, the Swiss canton of Bern passed a proposal to explore Bitcoin mining as a solution to over-utilization of energy and stabilizing the power grid.
Share this article
