Vancouver City Council has approved a motion to explore the integration of Bitcoin into its financial operations. The measure, introduced by Mayor Ken Sim and adopted at the Standing Committee meeting on December 11, 2024, directs staff to investigate the acceptance of BTC for city taxes and reimbursements and the feasibility of including them in the city’s financial reserves.
The movement received the support of six council members, while two were against and three were absent. The decision represents just the first step toward assessing Bitcoin’s potential role in securing the purchasing power of the City of Vancouver.
Next Bitcoin City?
Mayor Ken Sim emphasized that the initiative has an exploratory character rather than a well-defined commitment. He stated: “I am on a move that can help protect Vancouver’s financial future for the next 100 years and keep life affordable for our residents, becoming a Bitcoin-friendly city.”
According to Mayor Sim, the move would explore whether Bitcoin could serve as a hedge against inflation and currency depreciation, issues he believes undermine the long-term value of the city’s traditional reserves. “That means that the money we save today won’t buy as much in the future,” says Sim.
In comments ahead of the vote, Mayor Sim offered a strong defense of BTC’s properties: “Bitcoin, on the other hand, is a digital asset that works differently. It is decentralized, meaning it is not controlled by any one person, government or company, and its supply is finite.” He further noted the asset’s historical performance: “For the past 16 years, Bitcoin has been the best-performing financial asset in the world, and major companies, countries and cities are starting to use it as a way to protect their financial resources. ”
The mayor referred to various global legal areas ranging from El Salvador And Bhutan to Pennsylvania and ongoing considerations at the federal level in the US, with each exploring or adopting Bitcoin-based strategies. Highlighting Vancouver’s unique position given its established blockchain community, he noted: “Vancouver is already known for its blockchain community and history with cryptocurrency. This motion allows us to investigate whether Bitcoin can help us secure our financial resources and provide new options, such as allowing people, people without bank accounts, to pay city fees in Bitcoin.”
The motion itself outlines a comprehensive path forward. It directs city staff to study the implications of accepting BTC for taxes and fees, as well as the possibility of converting some of Vancouver’s reserves into Bitcoin. It also mandates consultation with financial advisors, cryptocurrency experts and other stakeholders.
The framework for the management and potential liquidation of BTC, should the city proceed, will be developed with an emphasis on “full transparency and accountability.” A report on the findings and feasibility is expected by the end of the first quarter of 2025.
The motion underlines that other jurisdictions have already taken steps towards BTC integration. Examples include Zug, Switzerland–often called ‘Crypto Valley’ – where Bitcoin has been accepted for municipal services and taxes; Seoul, South Korea, which is exploring blockchain integration in municipal operations; and El Salvador’s decision to adopt BTC as legal tender.
Vancouver’s motion also highlights Bitcoin’s potential contributions to the environment and infrastructure. It notes that mining BTC can use cheap, excess renewable energy, stabilize energy grids and reduce emissions. From a financial perspective, proponents argue that Bitcoin diversification could preserve the value of public funds in times of inflation or economic instability, potentially benefiting taxpayers and signaling Vancouver’s leadership and “willingness to embrace innovation.”
Finally, Mayor Sim reiterated the exploratory nature of the initiative: “I would like to emphasize that this motion does not mean that we are committing ourselves to anything today. It’s about studying the possibilities, understanding the risks and seeing if this can be a smart move for Vancouver’s future.”
At the time of writing, BTC was trading at $100,817.
Featured image created with DALL.E, chart from TradingView.com