The Vancouver City Council has approved a motion to explore integrating Bitcoin into the city’s financial operations, marking a significant step toward adopting cryptocurrency at the municipal level. The motion, introduced by Mayor Ken Sim, aims to investigate creating a Bitcoin reserve and enabling Bitcoin-based payment options. Sim framed the initiative as a way to safeguard against inflation and currency devaluation while addressing the city’s financial challenges.
During the Dec. 11 meeting, Mayor Sim emphasized the importance of planning for Vancouver’s long-term financial stability. He pointed to a 381% increase in real estate values between 1995 and 2022, contrasted with the stagnation of gold prices, and noted that the city’s $3.1 billion in fixed-income securities had recently lost $185 million in market value. “There is something going on here; our currency is getting debased, and we are losing our purchasing power,” Sim argued. To demonstrate his commitment, he pledged to donate $10,000 in Bitcoin to the city, regardless of the vote’s outcome.
While six councilors supported the motion, two opposed it, citing significant concerns. Councilor Pete Fry raised issues about the potential use of cryptocurrency in illicit activities and Vancouver’s history of money laundering, arguing that the city cannot legally transact in non-legal tender. Councilor Adriane Carr expressed alarm over the environmental toll of Bitcoin mining and its impact on the electricity grid. Both urged the council to consider these risks before proceeding.
The approved motion requests a comprehensive report by the first quarter of 2025, which will evaluate the feasibility, risks, and benefits of adopting Bitcoin. If implemented, Vancouver could become a pioneer in municipal cryptocurrency adoption, setting a precedent for other cities to follow. However, the debate highlights the broader challenges of balancing innovation with regulatory, ethical, and environmental considerations.
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