Vancouver City Council approves Bitcoin reserve proposal

The Vancouver City Council has approved a motion to explore the integration of Bitcoin (CRYPTO:BTC) into the city’s financial strategy, marking a significant shift in its approach to cryptocurrency. 

This initiative, led by Mayor Ken Sim, aims to diversify the city’s financial reserves and address concerns regarding fiat currency volatility and inflation.

The proposal includes creating a Bitcoin reserve and enabling the use of Bitcoin for municipal payments, such as taxes and fees. 

Mayor Sim emphasised the importance of considering Bitcoin as part of the city’s strategic assets to enhance financial stability. 

“It would be irresponsible for the City of Vancouver not to look at the merits of adding Bitcoin to the city’s strategic assets to preserve the city’s financial stability,” he stated.

This decision reflects a notable change from previous policies, as former Mayor Kennedy Stewart had attempted to ban Bitcoin ATMs in Vancouver. 

The council directed city staff to evaluate the feasibility and implications of adopting Bitcoin, with a report expected by the first quarter of 2025.

The motion highlights Bitcoin’s potential as a hedge against the devaluation of fiat currencies, aiming to safeguard the city’s purchasing power.

Sim noted that rising housing costs and inflation necessitate exploring alternative financial strategies. 

“Our currency is getting debased, and we are losing our purchasing power,” he explained.

The approval comes amid growing optimism in the cryptocurrency sector, particularly following political shifts in the U.S. that may promote regulatory clarity.

As Vancouver explores becoming a "Bitcoin-friendly" city, it joins other municipalities that have begun integrating cryptocurrency into their financial operations.

However, local experts have expressed concerns about Bitcoin's volatility and potential legal restrictions on its use as a payment method.

At the time of reporting, the Bitcoin price was $100,621.