Vancouver City Council has approved a proposal to explore integrating Bitcoin into its financial operations. The measure, introduced by Mayor Ken Sim and passed at the Standing Committee meeting on December 11, 2024, directs staff to investigate the acceptance of Bitcoin for city taxes and fees and the feasibility of incorporating it into the city’s financial reserves.
The proposal received the support of six members of the Council, while two opposed it and three were absent. the resolution It represents only the initial step towards assessing Bitcoin’s potential role in protecting the City of Vancouver’s purchasing power.
The next Bitcoin city?
Mayor Ken Sim Confirm The initiative is exploratory and not a firm commitment. “I am in a movement that can help protect Vancouver’s financial future over the next 100 years and keep life affordable for our residents, becoming a Bitcoin-friendly city,” he said.
According to Mayor Sim, the move will examine whether Bitcoin can serve as a hedge against inflation and currency devaluation, issues he highlighted as undermining the long-term value of the city’s traditional reserves. “This means that the money we save today will not buy as much of it in the future,” Sim said.
In remarks before the vote, Mayor Sim offered a strong defense of Bitcoin’s attributes: “Bitcoin, on the other hand, is a digital asset that works differently. It is decentralized, which means it is not controlled by any person, government or company, and its supply is limited.” Referring to the asset’s historical performance, he continued: “Over the past sixteen years, Bitcoin has been the best-performing financial asset on the planet, and major companies, countries and cities have begun to use it as a way to protect their finances. “
The mayor pointed to various global jurisdictions – from El Salvador and Bhutan to Pennsylvania and ongoing considerations at the US federal level – each of which are exploring or adopting Bitcoin-based strategies. He emphasized Vancouver’s unique position due to its well-established blockchain community, noting: “Vancouver is already known for its blockchain community and history in the cryptocurrency space. This move allows us to explore whether Bitcoin can help us protect our finances and offer new options such as Allowing people, unbanked individuals, to pay city fees in Bitcoin.”
The movement itself sets out a comprehensive path forward. It directs city staff to study the implications of accepting Bitcoin for taxes and fees, as well as the possibility of converting a portion of Vancouver’s reserves into Bitcoin. It also requires consultations with financial advisors, cryptocurrency experts and other stakeholders.
A Bitcoin governance and liquidation framework will be developed, should the city proceed, with a focus on “full transparency and accountability.” A results and feasibility report is scheduled to be submitted by the end of the first quarter of 2025.
This proposal confirms that other jurisdictions have already taken steps towards BTC integration. Examples include Zug, Switzerland – often called the “Crypto Valley” – where Bitcoin has been accepted for municipal services and taxes; Seoul, South Korea, which is exploring blockchain integration into municipal operations; And El Salvador’s decision to adopt Bitcoin as legal tender.
The Vancouver movement also emphasizes Bitcoin’s potential environmental and infrastructural contributions. He points out that BTC mining can use surplus, low-cost renewable energy, stabilize power grids and reduce emissions. From a financial perspective, proponents argue that diversifying Bitcoin could preserve the value of public funds in times of inflation or economic instability, which could benefit taxpayers and signal Vancouver’s leadership and “willingness to embrace innovation.”
In closing, Mayor Sim reiterated the exploratory nature of the initiative: “I want to stress that this proposal does not mean we are committed to anything today. It is about examining the possibilities, understanding the risks, and seeing if this could be a smart move for Vancouver’s future.”
At press time, Bitcoin was trading at $100,817.
Featured image created with DALL.E, a chart from TradingView.com
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