David Edwards
The Vancouver City Council has approved a motion to explore integrating Bitcoin into municipal financial operations. The resolution, which was put forth by Vancouver Mayor Ken Sim during the council meeting on December 11, was approved with six votes in favor, two against, and three abstentions.
Motivated by worries about inflation and currency devaluation, the project seeks to determine whether implementing Bitcoin as a municipal reserve and payment alternative is feasible.
“We have affordability challenges, and I truly believe that Bitcoin could be something that can solve our challenges, both financial and affordability,” Sim said.
Sim cited stark economic trends as motivating factors, including a 381% rise in housing prices from 1995 to 2022 and significant losses in the city’s fixed-income securities portfolio, which declined by $185 million in market value. Sim argued that traditional assets, such as gold, have failed to keep pace with inflation, emphasizing Bitcoin’s potential as a store of value.
Sim informed the council members, “There is something going on here; we are losing our purchasing power as our currency devalues.” Regardless of the success of the motion, the mayor promised to give the city $10,000 in Bitcoin as a sign of his commitment.
Concerns and Opposition
The idea was opposed due to worries about the potential misuse of digital assets, regulatory obstacles, and environmental damage, even though the majority supported it.
In his skepticism, Councilor Pete Fry emphasized Vancouver’s incapacity to lawfully accept non-sovereign currencies as tender and cited the city’s history of financial crimes like money laundering.
Because Bitcoin mining has a negative impact on the environment and power grids, Councilor Adriane Carr opposed the move.
Next Actions
The city will draft a thorough study outlining the advantages, disadvantages, and implementation plan for incorporating Bitcoin into local financial institutions as part of the motion. By the first quarter of 2025, the results should be available.
If successful, Vancouver might set an example for other cities thinking about implementing cryptocurrencies for innovation and financial stability.
