Emily Walker
Vancouver City Council has approved a motion to investigate the integration of Bitcoin into the city’s financial operations. Introduced by Mayor Ken Sim during the December 11, 2024, Standing Committee meeting, the proposal tasks city staff with looking into the acceptance of Bitcoin for taxes and fees, as well as the practicality of including it in the city’s financial reserves.
The motion garnered backing from six council members, with two voting against it and three absent. The approval marks the initial phase of evaluating Bitcoin’s potential to help preserve Vancouver’s purchasing power.
A Step Towards Becoming a Bitcoin City
Mayor Ken Sim clarified that this initiative is a preliminary exploration and not a definitive commitment. He expressed: “This motion could potentially protect Vancouver’s financial future over the next century and maintain affordability for our residents, paving the way for us to become a Bitcoin-friendly city.”
Sim mentioned that the objective is to assess whether Bitcoin can act as a safeguard against inflation and currency devaluation, challenges he pointed out as threats to the long-term value of the city’s existing reserves. “If we save money today, it may not hold the same purchasing power in the future,” Sim explained.
Prior to the vote, Mayor Sim passionately supported Bitcoin, stating: “Bitcoin is a decentralized digital asset, meaning it isn’t controlled by any single entity. Moreover, its supply is limited.” He highlighted its historical performance, noting, “For 16 years, Bitcoin has been the best-performing financial asset globally, with numerous countries, companies, and cities beginning to utilize it as a means of preserving their financial resources.”
The mayor pointed to various regions worldwide, such as El Salvador, Bhutan, and Pennsylvania, that are either exploring or already implementing Bitcoin-oriented strategies. He highlighted Vancouver’s distinct advantage, noting its established blockchain community and stating: “Vancouver has a robust blockchain presence and a history with cryptocurrency. This motion aims to investigate whether Bitcoin can help us manage our financial resources and provide options for the unbanked to pay city fees with Bitcoin.”
The motion details a thorough approach. It calls for city staff to examine the ramifications of accepting Bitcoin for taxes and fees, along with the possibility of allocating part of Vancouver’s reserves into Bitcoin. It will also involve consultations with financial and cryptocurrency specialists, among others.
Guidelines will be created for managing and potentially liquidating Bitcoin if enacted, ensuring the process will be marked by “full transparency and accountability.” A report detailing the findings and feasibility is expected by the end of the first quarter of 2025.
The motion reflects that other places have already moved towards Bitcoin integration. For instance, Zug, Switzerland—known as “Crypto Valley”—accepts Bitcoin for municipal payments; Seoul, South Korea, is looking at blockchain solutions in its city operations; and El Salvador has recognized Bitcoin as legal tender.
Additionally, the Vancouver motion points out the possible environmental and infrastructure benefits of Bitcoin. It suggests that BTC mining could leverage low-cost, surplus renewable energy, helping stabilize energy grids and cut down emissions. Financial supporters argue that diversifying with Bitcoin could help protect the value of public funds during inflation or economic downturns, ultimately benefiting taxpayers and showcasing Vancouver’s commitment to innovation.
In conclusion, Mayor Sim reiterated the exploratory aspect of the initiative: “It’s important to emphasize that this motion does not mean any commitments today. It’s about exploring opportunities, understanding risks, and evaluating if this could be a beneficial strategy for Vancouver’s future.”
As of the latest update, Bitcoin’s price was at $100.817.
