Vancouver Council votes to explore Bitcoin as a financial strategy

Vancouver City Council voted to explore the use of BTC in municipal finances, marking a significant step toward making the city “Bitcoin-friendly.”

Mayor Ken Sim introduced the motion, which was passed on Wednesday with strong support from six councillors. Two voted against and three were absent.

Vancouver to explore Bitcoin integration

The mayor’s initiative aims to explore Bitcoin as a possible safeguard against inflation and currency devaluation. in a statementSim, who is an investor in cryptocurrency exchange Coinbase, said the city must adapt to global financial changes, especially given its growing affordability crisis.

The city’s real estate market saw a staggering 381% increase in value between 1995 and 2022, while traditional assets such as gold and city securities failed to provide comparable returns. By contrast, Bitcoin has offered substantial returns over the past decade and Sim believes it could play a crucial role in stabilizing the city’s finances amid inflation and the devaluation of the traditional currency.

in a interview with Canadian news outlet Global News just before the vote, Sim said.

“Bitcoin is the highest-performing asset on the planet for the last 16 years, so not even considering including it as part of a diversified portfolio is, I think, reckless.”

Sim’s motion calls for a report by the end of the first quarter of 2025 to assess the feasibility, risks and benefits of Bitcoin adoption. Despite the support, the proposal faced opposition from Councilor Pete Fry, who expressed concerns about the potential for Bitcoin to be misused in criminal activities and its environmental impact due to the high energy consumption from mining.

To demonstrate his commitment, Sim has pledged to donate $10,000 in Bitcoin to the city, regardless of the outcome. He had said,

“Our family will donate $10,000 to the city of Vancouver in the form of bitcoin and this will be a gift to the city we love. “We totally believe in the benefits of this and are putting our money where our mouth is.”

Obstacles ahead

Although the motion was approved, challenges remain, particularly with legal restrictions preventing municipalities from holding cryptocurrencies as reserves. The provincial government has also clarified that local authorities are not authorized to use Bitcoin for transactions or investments under current law.

Following the development, the Ministry of Housing and Municipal Affairs highlighted that existing provincial laws, including the Community Charter and the Vancouver Charter, prohibit the use of cryptocurrencies for municipal payments or transactions.

Local governments are also prohibited from holding cryptocurrencies like Bitcoin in reserves, as legislation dictates that public funds can only be invested in approved, low-risk options to ensure financial stability.