Vancouver City Council Explores Incorporating Bitcoin into Municipal Financial Operations

Vancouver City Council has greenlit a proposal to explore the incorporation of Bitcoin into municipal financial operations, including the possibility of

Vancouver City Council has approved a proposal to investigate the possibility of integrating Bitcoin into municipal financial operations, such as holding Bitcoin as a reserve asset and accepting it for payments. The motion, submitted by Mayor Ken Sim, passed during a council meeting on Wednesday with the support of six councilors.

The motion directs city staff to explore the feasibility of making Vancouver a “Bitcoin-friendly city.” Mayor Sim, who owns shares in Coinbase Global Inc. (NASDAQ:COIN), has previously expressed his enthusiasm for adopting Bitcoin as part of the city’s financial strategy to safeguard its purchasing power against inflation. During the meeting, he announced a $10,000 donation to the city in the form of Bitcoin.

“Our family is going to donate $10,000 to the City of Vancouver in the form of bitcoin and this is going to be a gift to the city that we love,” Sim said. “We totally believe in the benefits of this and we’re putting our money where our mouth is.”

The proposal has encountered opposition from local government officials and experts due to Bitcoin’s price volatility. The Ministry of Housing and Municipal Affairs stated that neither the Community Charter nor the Vancouver Charter recognizes cryptocurrency as an acceptable form of payment for “municipal services or other transactions.” The ministry also confirmed that local governments are prohibited from holding financial reserves in digital assets.

Green Councilor Pete Fry, who opposed the motion, raised concerns about illicit activities. “In the absence of any really specific acknowledgement of … the very serious issues around money laundering and the history in this city, I don’t think this is a step in the right direction,” he said.

Following the council’s approval, city staff will now analyze the initiative and prepare a detailed report by the end of Q1 2025. The plan includes consulting with financial advisors, crypto experts, and community stakeholders to assess the risks, benefits, and practical considerations of Bitcoin asset management. The report will also evaluate the legal framework, technical infrastructure, and public engagement strategies necessary for the successful implementation of the proposal.