Key Takeaways
- It outlines a strategy to investigate integrating Bitcoin into Vancouver’s financial operations,
- Mayor Sim’s motion calls for city staff to prepare a detailed report on the feasibility of becoming a “Bitcoin-friendly city.”
Vancouver Mayor Ken Sim has introduced a motion to the city council proposing the exploration of Bitcoin as part of the city’s financial strategy. The initiative plans to evaluate BTC potential to safeguard purchasing power and diversify municipal reserves amid inflation and volatility in traditional fiat currencies.
The council will debate the motion, titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin-Friendly City,” on December 11. It outlines a strategy to investigate integrating Bitcoin into Vancouver’s financial operations, including possibly accepting municipal taxes and fees in the crypto and converting a portion of the city’s reserves into Bitcoin.
Mayor Sim has described Bitcoin as a well-established digital asset, citing its 16-year track record and suggesting it could provide a hedge against inflation and currency devaluation. He pointed to examples of other governments and regions, including Zug and Lugano in Switzerland, El Salvador, and communities in Africa, that have embraced Bitcoin in various capacities. Sim has also been a proponent of crypto adoption, having accepted crypto donations during his 2022 mayoral campaign.
Sim stated that incorporating Bitcoin could enhance the city’s financial stability and benefit taxpayers by preserving the value of public funds. He also argued that inflationary pressures on fiat currencies negatively impact the city’s purchasing power and require innovative approaches to financial management.
Additionally, current provincial legislation may limit Vancouver’s ability to hold crypto in its financial reserves. The Vancouver Charter and the Community Charter, which govern how municipalities in British Columbia manage their finances, do not recognize crypto as an acceptable form of investment or payment. The Ministry of Municipal Affairs has reiterated that local government funds must be managed to avoid undue risks, as they are sourced from taxpayers and developers with the expectation of stability and reliability.
Mayor Sim’s motion calls for city staff to prepare a detailed report on the feasibility of becoming a “Bitcoin-friendly city.” The report, expected by the first quarter of 2025, would assess the risks, benefits, and practical considerations of incorporating Bitcoin into Vancouver’s financial strategy. It would further explore asset management implications, the development of a framework for Bitcoin storage and liquidation, and the potential for broader community involvement in the decision-making process.
