Vancouver Mayor Proposes Integrating Bitcoin Into City Finances

(Bloomberg) — Vancouver could move to integrate Bitcoin into city finances in the slipstream of the digital token’s surge to an all-time high above $100,000, a rally fueled by US President-elect Donald Trump’s support for crypto.

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On Dec. 11, Vancouver City Council will consider a motion from Mayor Ken Sim titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.” Sim’s ABC party has a majority on the council.

If successful, the motion would direct city staff to analyze the potential of integrating the cryptocurrency, for instance by accepting taxes and fees in Bitcoin, or converting some of Vancouver’s financial reserves into Bitcoin.

The west coast Canadian city has long been a crypto hub, with a claim to the world’s first Bitcoin ATM in 2013, and home to blockchain startups like NFT company Dapper Labs Inc.

Sim’s motion notes supposed benefits accruing to other local and national governments which have embraced Bitcoin, from El Salvador — which made Bitcoin legal tender in 2021 — to Zug in Switzerland, which starting accepting Bitcoin for taxes.

The proposal argues that integrating Bitcoin signals a pro-innovation agenda and preserves the city’s purchasing power against the “volatility, debasement and inflationary pressures” of traditional currencies.

The motion also says that the often power-hungry process of Bitcoin mining has “shown environmental benefits” by consuming excess energy from stranded renewables and waste methane, “thus reducing emissions,” as well as making renewable energy projects financially viable.

Some studies challenge that argument. And in 2022, Vancouver’s home province of British Columbia placed a temporary moratorium on new cryptocurrency mining to preserve its hydro-electricity supply, with a government statement warning that “the unchecked growth of cryptocurrency mining operations in BC could make it more difficult” to meet clean electrification goals and keep customer rates low.