Vancouver councilors passed a resolution from Mayor Ken Sim on Wednesday that seeks to make the city “bitcoin-friendly,” giving employees the thumbs up to hold cryptocurrency in reserve and accept payments in the virtual currency.
Sim, an investor in a cryptocurrency exchange, said he believes investing in bitcoin is the fiscally responsible thing to do in an era of inflation and market volatility, and said he would personally donate $10,000 worth of bitcoins to the city.
City staff will now have to investigate whether the city can integrate bitcoin into its financial strategies and invest in the cryptocurrency by converting “a portion” of Vancouver's financial reserves.
“It would be irresponsible for the City of Vancouver not to look at the merits of adding Bitcoin to the City's strategic assets to preserve the City's economic stability,” Sim's motion reads.
The city of Vancouver may soon take a giant leap into the world of cryptocurrency. Mayor Ken Simm is introducing a proposal to explore making Vancouver a bitcoin-friendly city. But some experts say the move could be risky.
Mayer has an investment in cryptocurrency exchange Coinbase Global Inc., according to His 2024 financial disclosures. The company provides a platform through which Bitcoin can be traded.
The mayor says he consulted with the city's auditor general before proposing his proposal.
On Wednesday, more than a dozen speakers spoke in favor of the idea, including Victoria Lemieux, head of the Blockchain@UBC research cluster.
“Paying for city services and infrastructure, surprisingly, mining bitcoin seems to use a lot of energy,” she told CBC host Stephen Quinn. Early version.
“But there are green efforts going forward in the bitcoin mining space, and I think we can definitely look at those and how they can benefit to pay for things like city pools and other types of services.”
Mayor Ken Sim's proposal to make Vancouver a “bitcoin-friendly” city could lead to new areas of economic growth, such as bitcoin mining, said UBC Professor Victoria Lemieux, head of the Blockchain@UBC research cluster, and Jesse McKee, head of digital strategy. 2-21-A Art and Design Hub.
But some experts have expressed doubts about the environmental upsides of cryptocurrency mining, as well as concerns that the cryptocurrency's volatility means it is unsuitable for use in the city's financial reserves.
The environmental impact of Bitcoin mining boils down largely to the energy resources used in the process. Industry analysts have reported an increase in the use of clean energy in recent years, as concerns have grown over the amount of energy required.
Green Count. Pete Fry also expressed concern over the use of cryptocurrencies by organized crime.
“In the absence of any definitive recognition of the very serious issues … about money laundering and the history of this city, I don't think this is a step in the right direction,” he said.
Sim himself has been enthusiastic about the use of cryptocurrency, with Mayer recently describing bitcoin as “the greatest invention in human history.” Cryptocurrency talk show interviews with coin stories.
“Our family is going to donate $10,000 in bitcoins to the city of Vancouver and it will be a gift to the city we love,” he said at the meeting.
“We fully believe in its benefits and we are putting our money where our mouth is.”
There is no framework for using Bitcoin
SIM's ambitions may be hindered by existing laws, which currently do not allow cities to use bitcoin.
Furthermore, the federal government controls the fiscal framework for the country, says Dan Rohde, an assistant professor at the University of Windsor's faculty of law.
“I don't think the provinces will have the jurisdiction to, for example, recognize bitcoin as a currency in Canada,” he told CBC News on Sunday.
In a statement, a spokesperson for the Ministry of Housing and Municipal Affairs said the province's Community Charter, as well as the Vancouver Charter, do not recognize cryptocurrency as payment for “municipal services or other transactions.”
The ministry also said it would not allow local governments to hold financial reserves in cryptocurrencies.
It clarified that the law specifies how public funds can be invested or reinvested, and that cryptocurrencies such as bitcoin are not among the approved options.
“The purpose of the law is not to put local government funds at unnecessary risk,” a ministry spokesman said.
