Vancouver council passes mayor’s motion to make city ‘bitcoin-friendly’

Vancouver Councillors Approve Motion to Explore Bitcoin Integration

Vancouver councillors have recently passed a motion from Mayor Ken Sim that seeks to make the city “bitcoin-friendly.” This motion gives staff the green light to explore holding cryptocurrency in reserve and accepting payments in the virtual currency. Mayor Sim, who is an investor in a cryptocurrency exchange, believes that investing in bitcoin is a financially responsible decision in a time of inflation and market volatility. He even pledged to personally donate $10,000 worth of bitcoins to the city.

The city staff will now conduct research to determine if Vancouver can integrate bitcoin into its financial strategies. They will also explore the possibility of investing in cryptocurrency by converting a portion of Vancouver’s financial reserves. Mayor Sim’s motion asserts that it would be irresponsible for the City of Vancouver not to consider adding bitcoin to its strategic assets to preserve financial stability.

While the mayor’s proposal has garnered support from several speakers, including Victoria Lemieux, head of the Blockchain@UBC research cluster, and Jesse McKee, head of digital strategy at the 2-21-A art and design hub, some experts have expressed concerns. Green Coun. Pete Fry raised worries about the environmental impact of cryptocurrency mining and its potential use in organized crime.

One of the key concerns surrounding the integration of bitcoin into Vancouver’s financial systems is the lack of a legal framework. Current laws do not allow cities to use bitcoin, and the federal government controls the financial framework for the country. Dan Rohde, an assistant professor at the University of Windsor’s faculty of law, highlighted that provinces do not have the jurisdiction to recognize bitcoin as a currency in Canada.

Furthermore, the Ministry of Housing and Municipal Affairs stated that the province’s Community Charter and the Vancouver Charter do not recognize cryptocurrency as payment for municipal services or transactions. Local governments are also prohibited from holding financial reserves in cryptocurrency, as legislation specifies approved options for public fund investments.

Despite the regulatory challenges, Mayor Ken Sim remains optimistic about the benefits of integrating bitcoin into Vancouver’s financial systems. He views bitcoin as a revolutionary invention and believes in its potential to drive economic growth in the city. As Vancouver navigates the complexities of cryptocurrency integration, it will be essential to address regulatory hurdles and ensure financial stability in the process.