Vancouver City Council approved a motion to explore integrating Bitcoin into its finances, despite concerns over illicit use and mining’s impact.
The Vancouver City Council has approved a motion to investigate the integration of Bitcoin into its financial operations, which includes the potential for a Bitcoin reserve and payments option.
Before the Dec. 11 meeting, Mayor Ken Sim proposed that the city become a “Bitcoin-friendly city” as a means to protect against currency devaluation and inflation.
The motion was supported by six councilors, while two were in opposition and three were absent.
Before the vote, councilors, experts, and the public were afforded the opportunity to address the motion during the meeting.
Sim stated that he submitted the motion in response to “challenges in the future” and as a means of providing the Canadian city with “the next 100 years” when it was his turn to speak.
Sim stated, “We are facing affordability challenges, and I am convinced that Bitcoin has the potential to address both financial and affordability issues.”
Mayor Ken Sim also stated that he was motivated to present the concept to the council after conducting an investigation and discovering that the value of houses in the city had increased by 381% between 1995 and 2022, while gold had “pretty much remained much flat.”
Concurrently, he stated that the market value of the city’s fixed-income securities, which were valued at $3.1 billion, had decreased by $185 million.
Sim stated, “There is a problem; our currency is depreciating, and we are losing our purchasing power.”
Additionally, he pledged a Bitcoin donation to the city as a demonstration of his dedication, irrespective of the vote’s results.
“We are planning to donate $10,000 to the City of Vancouver in the form of Bitcoin as a gesture of love for the city we adore,” Sim stated.
He also stated, “We are fully committed to the advantages of this and are placing our money where our mouth is.”
Concern Regarding Illegal Activities, Environmental Consequences
The motion was opposed by Councilor Pete Fry, who expressed apprehension regarding the potential misuse of crypto and digital assets in illicit activities and the absence of consultation with law enforcement.
Vancouver, as per Fry, is also “unable to legally accept” and engage in a tender that is not legal.
He stated, “I do not believe that this is a positive step in the right direction, as there is no specific recognition of the extremely serious issues surrounding money laundering and the history of this city.”
Alabama’s state auditor recommends the establishment of a Bitcoin reserve.
The environmental impact of Bitcoin mining and the strain on the electricity grid were of significant concern to Councilor Adriane Carr, who also opposed the motion.
Sim requested a report on the Bitcoin Friendly City strategy by the end of the first quarter of 2025 in his original proposal.
This report should include the feasibility, risks, and potential benefits of adoption.