Vancouver Passes Motion to Become a "Bitcoin-friendly City"
KEY FACT: The Vancouver City Council has approved a motion to explore Bitcoin integration, intending to adopt it as a reserve asset and a payment option for municipal services. The legislation was spearheaded by Mayor Ken Sim, who pledged a $10,000 Bitcoin donation, the initiative seeks to address financial challenges, including inflation and asset devaluation. Despite concerns over legal constraints, potential misuse, and environmental impacts raised by councilors, the motion passed with six votes in favor. A comprehensive report evaluating the feasibility, risks, and benefits of this "Bitcoin-Friendly City" strategy is expected by early 2025, as a bold step in municipal financial innovation in cryptocurrency adoption.
Source: Vancouver
Vancouver Passes Motion to Become a "Bitcoin-friendly City"
The Vancouver City Council has approved a motion to explore the integration of Bitcoin into the city's financial operations. The proposal, introduced by Mayor Ken Sim, aims to assess the feasibility of holding Bitcoin as a reserve asset and enabling cryptocurrency payments within municipal systems.
The motion received substantial support during the council meeting on December 11, passing with six councilors in favor and two opposed; three councilors were absent. The session included presentations from experts and public commentary, providing a comprehensive discussion on the potential benefits and challenges of adopting Bitcoin at the municipal level. Details of the Council meeting is covered in the video below.
Mayor Sim articulated his rationale for the motion by highlighting the city's financial challenges, particularly the depreciation of purchasing power due to currency devaluation. He noted that between 1995 and 2022, housing prices in Vancouver surged by 381%, while the value of gold remained relatively stable. Additionally, the city's fixed-income securities, valued at $3.1 billion, experienced a $185 million decline in market value. Sim suggested that Bitcoin could serve as a hedge against inflation and currency devaluation, potentially enhancing the city's financial stability.
Demonstrating personal commitment to the initiative, Mayor Sim pledged a $10,000 donation in Bitcoin to the city, regardless of the motion's outcome. He stated,
"We totally believe in the benefits of this and we’re putting our money where our mouth is."
Six councilors supported the motion, while only two were in opposition. Source: Vancouver City Council
Despite the motion's approval, some councilors expressed reservations. Councilor Pete Fry raised issues regarding the potential use of digital assets in illicit activities and emphasized the necessity for consultation with law enforcement. He also pointed out legal constraints, noting that Vancouver "can’t legally accept" and transact in non-legal tender. Councilor Adriane Carr voiced environmental concerns, particularly the energy consumption associated with Bitcoin mining and its impact on the electricity grid.
The approved motion mandates a comprehensive report on the "Bitcoin-Friendly City" strategy by the end of the first quarter of 2025. This report will evaluate the feasibility, risks, and potential benefits of Bitcoin adoption for Vancouver's financial operations.
Vancouver has a history of engagement with cryptocurrency initiatives. Notably, it was the site of the first Bitcoin ATM and has hosted various blockchain events. The city's exploration of Bitcoin integration aligns with a broader trend of municipalities considering digital assets to diversify financial resources and address economic challenges.
Vancouver's plans for Bitcoin adoption reflects a growing interest among local and federal governments worldwide in adopting Bitcoin as a reserve asset. For instance, following the 2024 elections, lawmakers in the Pennsylvania House of Representatives and the U.S. Senate have proposed plans for government-held Bitcoin reserves.
Vancouver's decision to explore Bitcoin integration is a proactive step toward financial innovation. The forthcoming report will be crucial in determining the practicality and advisability of this initiative, considering both the potential benefits and the concerns raised. As cities globally grapple with economic challenges, Vancouver's approach could serve as a model for leveraging digital assets in municipal financial strategies.
Vancouver is a vibrant city located in British Columbia, Canada, known for its stunning natural scenery, diverse culture, and high quality of life. It is surrounded by mountains, the Pacific Ocean, and lush greenery, making it a popular destination for outdoor enthusiasts and urban explorers alike.
If you found the article interesting or helpful, please hit the upvote button, and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!
This post was created via INLEO, What is INLEO?
INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's Built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application: Inleo.io allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.
Let's Connect
Hive: inleo.io/profile/uyobong/blog
Twitter: https://twitter.com/Uyobong3
Discord: uyobong#5966
Posted Using InLeo Alpha
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
Holding bitcoin as a reserve asset is that not to risky, due to the high volatility of crpto, if the city is that eco-friendly using $BTC as a generally accepted means of exchange, that is cool but as a reserve asset?.....