The city council of Vancouver, Canada, has passed the motion to become a “Bitcoin-friendly city.” The return of United States President-elect Donald Trump has partially driven the move, which is seen as a step towards embracing innovation.
Vancouver Votes for Bitcoin
The proposal suggests allocating a portion of the city’s financial reserves to Bitcoin. It cites Bitcoin’s potential as a hedge against inflation and a means to promote innovation and economic growth. The move aims to position Vancouver as a blockchain and crypto innovation hub.
The city’s Mayor, Ken Sim, has been a vocal advocate for Bitcoin, calling it “the greatest invention ever in human history.” He believes that conventional fiat currency will eventually become obsolete and that Bitcoin’s value will increase significantly. Sim’s enthusiasm for Bitcoin has been evident since he announced the motion in late November.
Vancouver’s decision to adopt a “Bitcoin-friendly” policy is part of a broader trend of global interest in crypto. With other countries, provinces, and states exploring the use of Bitcoin, Vancouver wants to get ahead of the curve. The city’s reputation as a hub for digital innovation makes it an ideal location for embracing new technologies like Bitcoin.
Meanwhile, the motion approval does not mean the city is now committed to immediate crypto investments or payments. Instead, the council has directed staff to investigate potential crypto uses and explore the possibility of making Vancouver a Bitcoin-friendly City.
Vancouver’s Decision Raises Concerns
The city’s decision to become a Bitcoin hub has also raised concerns among experts, who point to the asset’s price volatility and the regulatory challenges associated with investing in crypto.
Vancouver City Council members are divided on the proposal to explore the use of Bitcoin in municipal finances. Councillor Peter Meiszner voted in favor but expressed skepticism about the city investing public money in crypto. He highlighted the difference between individual residents investing their money and the city’s financial responsibilities.
On the other hand, Councillor Pete Fry opposed the motion, citing concerns about Bitcoin’s potential use for money laundering. He pointed out that the Vancouver Police Department had previously recommended banning Bitcoin ATMs due to money laundering risks. FINTRAC, the Canadian financial regulator, recently warned about the same issue in May.
Embracing Bitcoin could attract new businesses and talent to the city, driving innovation and economic growth. As Vancouver explores the use of Bitcoin, it will be closely watched by other cities, countries, and investors worldwide who may follow suit.
