Vancouver approves move to explore Bitcoin as a reserve asset

Key Takeaways

Vancouver City Council has approved a move to make the city “Bitcoin friendly.”
Mayor Sim advocates accepting Bitcoin as a way to protect the city's purchasing power from inflationary pressures.

The Vancouver City Council has made a proposal to explore how Bitcoin will enter the city's financial operations, including the ability to hold Bitcoin as a reserve asset and accept it for payments.

The motion, introduced by Mayor Ken Sim, was approved during a council meeting Wednesday with the support of six councillors, effectively directing city staff to study the possibility of making Vancouver a “Bitcoin-friendly city.”

Mayor Sim, who owns shares in Coinbase Global Inc., believes that accepting Bitcoin as part of the city's financial strategy will help protect its purchasing power against inflation. He has pledged to donate $10,000 worth of Bitcoin to the city.

“Our family is going to donate $10,000 to the City of Vancouver in the form of bitcoin and this is going to be a gift to the city that we love,” he said at the meeting. completely believe in the benefits that come with this and we are putting our money where our mouth is.”

The suggestion is yes the face from local experts and government officials due to Bitcoin price volatility.

The Ministry of Housing and Urban Affairs said neither the Community Charter nor the Vancouver Charter recognize crypto as payment for “municipal services or other transactions.” The ministry also confirmed that local governments cannot hold financial resources in digital assets.

Green Councilor Pete Fry, who opposed the move, raised concerns about illegal activities.

“Without really specific recognition of … the very serious issues with money laundering and the history of this city, I don't think this is a step in the right direction,” he said. .

City staff are now tasked with analyzing the initiative and delivering a detailed report by the end of Q1 2025, examining the risks, benefits and practical issues of Bitcoin asset management. The plan includes consultation with financial advisors, crypto experts, and community stakeholders.

The campaign for Bitcoin adoption has been growing ever since Donald Trump won the election. Trump has expressed intentions to create a more favorable regulatory environment for the crypto industry.

The movement is now expanding on a global scale, with discussions of a strategic Bitcoin reserve gaining traction among other nations' lawmakers. Last month, Switzerland The Canton of Bern accepted a proposal explore Bitcoin mining as a solution to energy overuse and power grid stability.