Vancouver councillors OK motion to explore making the city 'bitcoin-friendly'

Mayor Ken Sim, who's an investor in a cryptocurrency exchange, said he believes investing in bitcoin is the financially responsible thing to do

Vancouver city council has passed a motion that could see the city begin accepting bitcoin payments and exploring the possibility of adding cryptocurrency to its financial reserves.

The motion, put forward by Mayor Ken Sim, was passed on Wednesday and now directs city staff to investigate the matter.

Sim, who is also a cryptocurrency investor, has been a vocal advocate for the initiative, arguing that it would be "irresponsible" for the city not to consider bitcoin in an era of high inflation and market volatility.

"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 at the meeting.

"We totally believe in the benefits of this and we're putting our money where our mouth is."

The mayor's enthusiasm for bitcoin is evident in his recent description of the cryptocurrency as "the greatest invention ever in human history" during an interview with cryptocurrency talk show Coin Stories.

However, the city's aspirations may encounter obstacles due to existing laws that do not permit municipalities to accept bitcoin.

Moreover, the federal government has jurisdiction over the country's financial framework.

"I don't even think the provinces would have jurisdiction to, for example, recognize bitcoin as a currency in Canada," Dan Rohde, an assistant professor at the University of Windsor's faculty of law, told CBC News on Sunday.

According to a statement from a spokesperson for the Ministry of Housing and Municipal Affairs, the Community Charter and the Vancouver Charter do not recognize cryptocurrency as a valid form of payment for "municipal services or other transactions."

The ministry also stated that local governments are not permitted to hold financial reserves in cryptocurrency.

The legislation outlines specific avenues for investing or reinvesting public funds, and bitcoin is not included among the approved options.

"The intent of the legislation is that local government funds are not exposed to undue risk," the ministry spokesperson said.