In 2013, the inaugural Bitcoin ATM was set up and launched at a local coffee shop in downtown Vancouver. Today, the city is exploring ways to incorporate Bitcoin into its financial system.

Vancouver City Council voted Wednesday to explore ways to make the city "Bitcoin-friendly," taking a bold step into crypto despite potential regulatory hurdles.

The controversial motion, spearheaded by Mayor Ken Sim, was approved at the City Council's Standing Committee meeting on Wednesday.

Specifically, the motion directs council staff to explore accepting taxes and fees in Bitcoin and converting part of the city’s financial reserves into Bitcoin to protect against inflation and currency volatility.

Thirty-four people spoke to the motion, with supporters from ABC Vancouver and opposition from Green Party members. Sim is a party member of the former.

While the approval doesn't immediately commit the city to crypto investments, it initiates a comprehensive study of potential Bitcoin integration into municipal finances.

However, the directive faces immediate roadblocks.

The British Columbia Ministry of Municipal Affairs confirmed that crypto isn't currently recognized as a legal form of payment for municipalities, explicitly stating that local governments cannot hold financial reserves in crypto.

Sim, who has disclosed that he has investments in Coinbase Global and Purpose Bitcoin ETF, remained undeterred.

"Bitcoin is the number one performing asset on the planet over the last 16 years," Sim said in an interview with Canadian news outlet Global News before the vote. "To not even look at including it as a part of a diversified portfolio is, I think, reckless," he added. 

Environmental concerns

The council chamber saw divided opinions among its members. ABC Councilor Peter Meiszner, while voting in favor, expressed caution about the difference between private and public crypto investment. 

Meanwhile, Green Councilor Pete Fry opposed the motion, citing money laundering concerns previously raised by the Vancouver Police Department.

"Governments have to catch up," Sim said, pledging a personal $10,000 Bitcoin donation to the city regardless of the vote's outcome.

Environmental implications also emerged as a key point of contention. Councilor Adriane Carr highlighted worries about Bitcoin's electricity demands, which are particularly relevant given recent council debates about the city's power grid capacity.

Decrypt has reached out to ABC Vancouver for comments on how this could be implemented once the feasibility study is completed.

The approved motion directs city staff to return with a feasibility report by Q1 2025, examining potential crypto integration into municipal operations and investment strategies. 

That timeline coincides with the broader institutional adoption of Bitcoin, including recent moves by major financial players like BlackRock and Fidelity.

Bitcoin is trading at just over $100,000, a price milestone that it reached 15 years after Satoshi Nakamoto, its creator, envisioned a financial revolution.

Edited by Sebastian Sinclair