The City Council #Vancouver has just approved a study on integrating Bitcoin into the financial system, despite legal barriers and environmental concerns.
1. Bold action from Vancouver
The city of Vancouver, which installed the first Bitcoin ATM in 2013, is aiming to become a 'Bitcoin-friendly' city. At a meeting on Wednesday, the City Council approved a proposal from Mayor Ken Sim, directing the study of the possibility:
• Accepting tax and fee payments in Bitcoin.
• Shifting part of the city's financial reserves into $BTC to mitigate the impacts of inflation and currency volatility.
2. Legal barriers and conflicting views
• Legal: The Ministry of Interior of British Columbia asserts that cryptocurrencies have not been recognized as a legal payment method for local governments.
• Conflicting opinions:
• ABC Vancouver supports the Bitcoin study, with Mayor Sim arguing that not considering Bitcoin in the investment portfolio is 'reckless'.
• The Green Party opposes, expressing concerns about money laundering and the environmental impacts of Bitcoin mining.
3. City's commitment
Despite concerns, Mayor Sim is committed to gifting individuals 10,000 USD in Bitcoin to the city, regardless of the final outcome of the study. The Council also requested a feasibility report by Q1 2025 to comprehensively evaluate the integration of Bitcoin into public finance.
Expectations and prospects
This move comes as Bitcoin has just surpassed the 100,000 USD price mark, with major financial institutions like BlackRock and Fidelity also pushing for cryptocurrency adoption. Vancouver could become a pioneering city if the study is successfully completed and overcomes current legal barriers.
