Vancouver Council Votes in Favor of Exploring Bitcoin as a Financial Strategy

Vancouver’s metropolis council has voted in favor of exploring using BTC in municipal funds, marking a big step towards making town “Bitcoin-friendly.”

Mayor Ken Sim launched the movement, which handed on Wednesday with robust assist from six councilors. Two voted towards it, and three had been absent.

Vancouver to Discover Bitcoin Integration

The mayor’s initiative goals to discover Bitcoin as a possible safeguard towards inflation and foreign money devaluation. In a statement, Sim, who’s an investor in cryptocurrency trade Coinbase, mentioned that town should adapt to world monetary shifts, particularly given its rising affordability disaster.

Town’s housing market noticed a staggering 381% improve in worth between 1995 and 2022, whereas conventional belongings like gold and metropolis securities failed to offer comparable returns. In distinction, Bitcoin has provided substantial returns over the previous decade, and Sim believes it may play an important position in stabilizing town’s funds amid inflation and the devaluation of conventional foreign money.

In an interview with the Canadian information outlet International Information proper earlier than the vote, Sim was quoted saying.

“Bitcoin is the primary performing asset on the planet over the past 16 years, so to not even take a look at together with it as part of a diversified portfolio is, I believe, reckless.”

Sim’s motion requires a report by the tip of the primary quarter of 2025 to evaluate the feasibility, dangers, and advantages of Bitcoin adoption. Regardless of the assist, the proposal confronted opposition from Councilor Pete Fry, who raised issues about Bitcoin’s potential for misuse in legal actions and its environmental influence on account of excessive vitality consumption from mining.

To exhibit his dedication, Sim has pledged a $10,000 donation in Bitcoin to town, whatever the final result. He had mentioned,

“Our household goes to donate $10,000 to the Metropolis of Vancouver within the type of bitcoin and that is going to be a present to town that we love. We completely consider in the advantages of this and we’re placing our cash the place our mouth is.”

Hurdles Forward

Though the movement has handed, challenges stay, notably with authorized restrictions that forestall municipalities from holding cryptocurrency as reserves. The provincial authorities has additionally clarified that native authorities will not be licensed to make use of Bitcoin for transactions or investments beneath present regulation.

Following the event, the Ministry of Housing and Municipal Affairs highlighted that current provincial legal guidelines, together with the Group Constitution and Vancouver Constitution, prohibit using cryptocurrencies for municipal funds or transactions.

Native governments are additionally restricted from holding cryptocurrencies like Bitcoin in reserves, as laws dictates that public funds can solely be invested in low-risk, authorized choices to make sure monetary stability.