Vancouver’s city council has approved Mayor Ken Sim’s motion to explore making the city “bitcoin-friendly.” The plan involves investigating cryptocurrency integration into city financial strategies, including accepting Bitcoin payments and holding reserves in cryptocurrency.
Sim, an investor in cryptocurrency, called Bitcoin a “financially responsible asset” amid inflation and market instability. He pledged to donate $10,000 worth of Bitcoin to the city to underline his commitment.
See Related: FBI Arrests Hacker Behind Fake SEC Bitcoin ETF Announcement
“It would be irresponsible for the City of Vancouver to not look at the merits of adding bitcoin to the city’s strategic assets to preserve the city’s financial stability,” his motion argued.
City staff will now assess the feasibility of converting a portion of Vancouver’s reserves into cryptocurrency. They will also examine legal and environmental concerns tied to Bitcoin mining and explore clean-energy options within the sector.
Expert’s Opinion
Several experts have offered mixed opinions. Victoria Lemieux, a UBC professor and blockchain expert, supported the initiative, highlighting Bitcoin’s potential for economic innovation. Others, like Green Councillor Pete Fry, voiced concerns over cryptocurrency’s links to money laundering and organized crime.
Legal obstacles remain a significant hurdle. Existing Canadian laws prevent cities from using cryptocurrency for municipal payments or holding it as reserves. Provincial legislation also restricts risky investments with public funds, potentially stalling Sim’s ambitious plans.
Despite these challenges, Sim remains optimistic, describing Bitcoin as “one of humanity’s greatest inventions” and a potential asset for Vancouver’s future.
