🌎 Vancouver Votes to Explore Bitcoin Reserve

Vancouver Takes a Step Towards Being a Bitcoin-Friendly City

The Vancouver city council has voted in favor of a motion to explore the possibility of holding Bitcoin (BTC) in reserve and making the city more Bitcoin-friendly. The motion, proposed by Mayor Ken Sim, aims to diversify the city’s financial reserves and stabilize its financial standing amidst inflation and market volatility.

The Motion’s Details

The motion, filed in November, suggests that it would be “irresponsible” not to evaluate the merits of incorporating Bitcoin into the city’s strategic assets. This could include accepting taxes and fees in Bitcoin and converting a portion of Vancouver’s current financial reserve into the cryptocurrency. The motion’s passing is in line with the city’s 2025 budget plan.

The Potential Benefits of Bitcoin

Bitcoin has often been described as a digital version of gold, with a capped supply of just 21 million coins. This limited supply makes it an attractive store of value that can shelter from inflationary pressures. Mayor Ken Sim, who has been serving as mayor of Vancouver since 2022, believes that investing in Bitcoin is financially responsible in an era of inflation and market volatility.

Expert Insights and Concerns

Victoria Lemieux, head of the Blockchain research cluster at the University of British Columbia, expressed support for the council’s decision. However, she also acknowledged concerns over the environmental footprint of Bitcoin mining and the volatility of cryptocurrency. “Mining BTC would take a lot of energy,” she said.

Legislative Hurdles

The Bank of Canada’s Currency Act prevents cities from holding Bitcoin as a reserve or using it as payment for local expenditures. However, Section 27.1 of the Bank of Canada Act creates some leeway regarding the assets the Bank of Canada could evaluate. While legislative changes would be required, Vancouver’s motion signals a potential shift towards integrating Bitcoin into official financial portfolios.

What’s Next?

City officials will now work to see if Bitcoin can be incorporated into the city’s financial strategies. Mayor Ken Sim has also donated $10,000 worth of Bitcoin to the city from his personal holdings. As the city explores the possibility of holding Bitcoin in reserve, it may pave the way for other cities to follow suit.

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