The proposal would direct city staff to research potential cryptocurrency reserves and payment acceptance.
Sim, who holds an investment in Coinbase Global Inc., argues that examining bitcoin as a strategic asset is financially responsible. He pledged to personally donate CAD10,000 in bitcoin to the city and has previously described cryptocurrency as “the greatest invention ever in human history.”
“It would be irresponsible for the City of Vancouver to not look at the merits of adding Bitcoin to the city’s strategic assets to preserve the city’s financial stability,” Sim wrote in his motion.
Provincial legislation currently prohibits municipalities from recognizing cryptocurrency as payment for municipal services, holding financial reserves in cryptocurrencies, or investing public funds in digital assets.
Experts raised additional concerns about potential environmental impacts of bitcoin mining, cryptocurrency’s price volatility, risks of money laundering, and jurisdictional limitations on cryptocurrency adoption.
Legal experts, including University of Windsor professor Dan Rohde, noted that federal and provincial frameworks effectively prevent municipal cryptocurrency adoption. The provincial Ministry of Housing and Municipal Affairs explicitly stated that local government funds must not be exposed to undue risk, which currently excludes cryptocurrencies from approved investment options.
Sim’s proposal highlights the ongoing tension between innovative financial strategies and existing regulatory frameworks governing public financial management. While forward-thinking leaders like Sim seek to embrace emerging technologies, existing legal structures remain cautious about cryptocurrency’s potential risks.
Disclaimer: The content on this website is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult a qualified professional before making financial decisions.
