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Vancouver Explores Becoming a Bitcoin-Friendly City
The Vancouver city council has taken a significant step toward exploring the feasibility of transforming the municipality into a “Bitcoin-friendly city.” In a recent vote, council members approved a motion to investigate various avenues related to cryptocurrency integration within the city’s framework.
The motion passed on Wednesday directs city staff to research potential strategies, although it is important to note that this does not entail immediate investments or acceptance of cryptocurrency payments. The initiative garnered support primarily from Mayor Ken Sim and his ABC Vancouver council colleagues, while opposition came from two councillors from the Green Party.
A total of 34 individuals registered to voice their opinions on the motion, with many expressing enthusiasm for the emerging technology and its potential impact on the local economy.
Prior to the vote, Mayor Sim, a self-proclaimed advocate for cryptocurrency, articulated his views in an interview, stating that exploring Bitcoin was a prudent decision. He emphasized that over the past 16 years, Bitcoin has outperformed all other assets, suggesting that neglecting it in a diversified investment strategy would be imprudent.
“With the anticipated widespread adoption of Bitcoin, the question for Vancouver, and indeed for the province and the country, is whether we want to lead in this space or fall behind,” he remarked. The mayor further expressed his belief that the rising cost of living could be attributed to the devaluation of government-backed currencies, an issue he believes cryptocurrency could address.
Sim, who initially approached cryptocurrency with skepticism, mentioned that he has dedicated a significant amount of time—approximately “10,000 hours”—to understanding the topic. He disclosed that cryptocurrency now represents a portion of his family’s investment portfolio, which includes interests in Coinbase Global and a Canadian Bitcoin exchange-traded fund.
In a show of commitment, Sim announced his intention to donate $10,000 worth of Bitcoin to the city, regardless of the outcome of the vote.
ABC Councillor Peter Meiszner, who supported the motion, expressed a combination of interest and skepticism. He acknowledged the difference between individual investments in cryptocurrency and the city potentially utilizing public funds in such ventures. Meanwhile, Green Councillor Pete Fry raised concerns about the motion’s omission of critical issues such as Bitcoin’s association with money laundering, which he argued is relevant to the city’s ongoing drug and housing crises.
“In 2019, the Vancouver Police Department requested a ban on Bitcoin ATMs due to concerns about money laundering, and regulatory warnings about these machines persist,” Fry pointed out, citing various law enforcement agencies’ concerns over Bitcoin’s links to illegal activities.
Environmental and Investment Concerns
Councillor Adriane Carr, also from the Green Party, voiced apprehensions about the environmental implications of Bitcoin mining and trading, which are known to consume significant amounts of electricity. She referred to previous council discussions about local energy supply and sustainability, highlighting the need for responsible energy management in any potential cryptocurrency initiatives.
Additionally, Carr questioned the investment safety of Bitcoin. Despite its current high trading value, Bitcoin is notorious for its volatility, with significant price fluctuations observed throughout its history. Just one year prior, Bitcoin’s value was significantly lower than it is today. UBC economics professor Werner Antweiler expressed caution, describing cryptocurrency investments as high-risk ventures more suitable for individual investors than municipalities.
Looking Ahead
City staff are expected to present their findings on this initiative by the end of the first quarter of 2025. However, implementing a Bitcoin-friendly framework in Vancouver will face considerable challenges, primarily due to existing provincial regulations. The British Columbia Ministry of Municipal Affairs has stated that cryptocurrencies are not currently permissible as a payment method for municipal services, emphasizing the need for safeguarding public funds against undue risk.
In response to these regulatory constraints, Mayor Sim remained optimistic, suggesting that early adoption is essential for progressive governance. “Governments need to evolve with the times,” he said confidently, forecasting that cryptocurrency will become integral to global economies in the forthcoming years.
Source
globalnews.ca