The Vancouver City Council has approved a motion to investigate the incorporation of Bitcoin into its financial framework, including the prospect of establishing a Bitcoin reserve and offering payment options in the cryptocurrency. The initiative was put forth by Mayor Ken Sim, who aims to position Vancouver as a “ Bitcoin -friendly city,” hoping to mitigate risks associated with inflation and currency depreciation.
During the council meeting, the motion garnered support from six councilors while two opposed and three were absent. Sim emphasized the need for this initiative as a proactive measure to secure the city’s financial future over the next century. He highlighted persistent affordability issues within the community, arguing that Bitcoin could provide a viable solution. The discussion incorporated insights from experts and public commentary, shedding light on both potential benefits and concerns.
Sim’s advocacy for Bitcoin was further fueled by alarming statistics regarding the real estate market, with residential property values reportedly surging by 381% from 1995 to 2022. In contrast, the value of gold remained stable, while the city’s fixed-income assets saw a decline of $185 million. The mayor expressed concern over the diminishing purchasing power of the local currency, emphasizing the need for alternative investment options.
Despite the enthusiasm, some council members raised serious concerns. Councilor Pete Fry questioned the association of cryptocurrencies with illicit activities and criticized the lack of engagement with law enforcement. He cautioned against accepting currencies that lack legal status and urged for thorough consideration of issues like money laundering.
Additionally, Councilor Adriane Carr expressed worries regarding the environmental impact of Bitcoin mining, particularly its strain on the city’s energy infrastructure. In response to these discussions, Sim has requested a comprehensive report by the end of the first quarter of 2025 to evaluate the feasibility, risks, and advantages of adopting Bitcoin in Vancouver’s financial strategy.
