The Vancouver City Council has approved a motion to explore adopting Bitcoin within its financial framework, including the potential establishment of a Bitcoin reserve and the integration of cryptocurrency payment options.
Mayor Ken Sim spearheaded the initiative at the council meeting on December 11, proposing that embracing Bitcoin could act as a hedge against inflation and currency devaluation.
The motion garnered support from six councilors, faced opposition from two, and saw three members absent during the vote.
During the session, council members, experts, and residents had the opportunity to voice their opinions on the proposal.
When addressing the council, Sim explained that his motivation stemmed from the need to prepare Vancouver for “future challenges” and ensure a secure economic foundation for “the next 100 years.”
“With the affordability issues we face, I believe Bitcoin offers a potential solution to tackle both financial and housing affordability challenges,” Sim stated.
Sim highlighted his findings about the city’s economic trends, noting that between 1995 and 2022, home values in Vancouver surged by 381%, while gold prices remained relatively stagnant. At the same time, the city’s $3.1 billion fixed-income securities suffered a $185 million loss in market value.
“This indicates a clear problem — our currency is losing value, and our purchasing power is being eroded,” Sim emphasized.
As a gesture of his confidence in Bitcoin, Sim pledged to donate Bitcoin to the city, regardless of the motion’s outcome.
“Our family will contribute $10,000 in Bitcoin to Vancouver as a gift to the city we love,” he said. “We truly believe in the benefits of this technology and are backing it with our own resources.”
Concerns Over Illicit Use and Environmental Impact
Councilor Pete Fry, one of the motion’s opponents, expressed apprehension about the potential misuse of digital assets for illicit activities and the lack of collaboration with law enforcement.
Fry also argued that Vancouver is currently unable to legally accept or transact in currencies other than those officially recognized by Canadian law.
“Given our city’s history with money laundering and financial crimes, moving in this direction doesn’t seem like a prudent choice,” Fry said.
Councilor Adriane Carr, who also voted against the motion, raised concerns about the environmental impact of Bitcoin mining and its significant energy consumption.
In the original proposal, Sim called for a comprehensive report on the feasibility, risks, and advantages of adopting a Bitcoin-friendly strategy, with a deadline set for the first quarter of 2025.
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