Vancouver's 'bitcoin friendly city' plan likely to hit provincial roadblocks

Vancouver city council passed a motion Wednesday to make the city “bitcoin friendly,” but it’s likely to meet provincial roadblocks.

The motion was tabled by Mayor Ken Sim who has admitted to being “orange-pilled,” a term used by bitcoin supporters to describe their dedication to the asset.

It passed with ABC councillors Rebecca Bligh and Lisa Dominato absent for the vote. Green councillors Adriane Carr and Pete Fry voted against it.

The motion asks staff to explore options including the potential for municipal taxes and fees to be paid in bitcoin, “as well as the potential conversion of a portion of the city’s financial reserves into Bitcoin.”

When asked about criticism regarding purchasing Bitcoin with public funds to hold in a reserve, Sim said, it’s a valid concern, and reiterated he wasn’t providing investment advice.

“Bitcoin is also the number one performing asset on the planet over the last 16 years,” he said. “If you’re taking the long-term view then volatility isn’t much of an issue.”

As per his 2023, financial disclosures, Sim holds some investments in a crypto exchange, and a bitcoin ETF. He was quick to dispel any conflict-of-interest questions.

“It’s not even the perception of conflict,” he said, adding that he “ran it by legal counsel as well.”

'That's the entrepreneurial spirit'

Fry said he had some concerns with the motion, particularly in regards to the cryptocurrency being used for money laundering.

“I don't think it’s a well thought out piece, and I do again reflect on the already very well -known problems we have in the City of Vancouver with money laundering and think this is probably going to further facilitate those issues,” he said.

When asked if these plans abide by the province’s Community Charter, which helps guide local governments, Sim said, there are obstacles.

“We want to look at how we can incorporate Bitcoin as part of that solution,” he said “We can figure everything else out later. That's the entrepreneurial spirit.”

Community Charter

In a statement to CTV News, the Ministry of Housing and Municipal Affairs said, “neither the Community Charter nor the Vancouver Charter recognizes the use of cryptocurrency as a form of payment for municipal services or other transactions.”

The province adds it’s not considering amending legislation for local governments to permit investment in cryptocurrency and said, “local governments in British Columbia, including the City of Vancouver, can not hold financial reserves or make any investments using cryptocurrency, such as Bitcoin.”

Sim doesn’t seem to be deterred, telling CTV News he plans on visiting El Salvador next year, on his own dime. The country was the first to use Bitcoin as legal tender.

When asked if he believed bitcoin is still the greatest human invention, he said, “I’m going to get in trouble for saying this, but I do. There’s never existed a time where we could create very sound money that can't be manipulated by any person, corporation or country and that’s a big deal.”