The city council has voted to explore the use of Bitcoin in its financial strategy, signaling a move toward becoming more Bitcoin-friendly.
Mayor Ken Sim leads the charge
The mayor introduced the motion, which passed with strong backing from six councilors, while two voted against it and three were absent.
Sim’s initiative wants to look into Bitcoin as a potential hedge against inflation and currency devaluation, because he believes that with the city facing an affordability crisis, it’s more important than ever to adapt to global financial changes.
Between 1995 and 2022, Vancouver’s housing market skyrocketed by 381%, while traditional assets like gold and municipal securities didn’t deliver similar returns.
In contrast, Bitcoin has shown impressive growth over the past decade, and Sim thinks it could be key to stabilizing the city’s finances as inflation looms.
“Bitcoin is the number one performing asset on the planet over the last 16 years, so not considering it for a diversified portfolio is, I think, reckless.”
Bitcoin only
As part of his commitment to this initiative, Sim has promised a $10,000 donation in Bitcoin to the city, regardless of how the proposal turns out.
“Our family is going to donate $10,000 to the City of Vancouver in the form of Bitcoin. This is going to be a gift to the city that we love. We totally believe in the benefits of this and we’re putting our money where our mouth is.”
Unknown path
While this motion has passed, there are still hurdles to overcome, as legal restrictions prevent municipalities from holding cryptocurrency as reserves.
The provincial government has made it clear that local authorities aren’t allowed to use Bitcoin for transactions or investments under existing laws.
Following this development, the Ministry of Housing and Municipal Affairs pointed out that current provincial laws prohibit using cryptocurrencies for municipal payments or transactions.
Local governments are also restricted from holding cryptocurrencies like Bitcoin in reserves since legislation mandates that public funds can only be invested in low-risk, approved options to maintain financial stability.
