Get ready for a wild ride, Vancouver! The city council just gave the green light to explore the thrilling world of Bitcoin for its financial reserves and payments. With housing prices soaring and affordability taking a hit, Vancouver is looking to Bitcoin as a potential financial superhero.
Mayor Ken Sim is leading the charge, introducing this bold motion that won big in the council – six councilors shouted “yes,” while two were skeptical, and three were MIA. The mayor, who has a foot in the crypto world through his investment in Coinbase, is all about keeping Vancouver ahead of the financial curve. He believes that Bitcoin might just be the shield the city needs against the inflation dragon and the devaluation gremlin.
Vancouver's housing market has been on a rollercoaster, with property values skyrocketing by a jaw-dropping 381% between 1995 and 2022. Traditional investments like gold and securities just haven't kept up the pace. Enter Bitcoin, the rock star of returns over the past decade. Sim is convinced it could be the steady anchor the city needs in these stormy economic seas.
In a lively chat with Global News, Sim said, “Bitcoin is the number one performing asset on the planet over the last 16 years, so to not even look at including it as a part of a diversified portfolio is, I think, reckless.” Talk about a mic drop!
The plan is to have a detailed report by early 2025, weighing the pros and cons of jumping on the Bitcoin bandwagon. But not everyone’s clapping – Councilor Pete Fry is waving red flags about Bitcoin’s shady side, like its environmental footprint and potential for criminal mischief.
Putting his money where his mouth is, Sim has promised to donate a cool $10,000 in Bitcoin to the city, win or lose. “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. We totally believe in the benefits of this and we’re putting our money where our mouth is,” he declared with a flourish.
However, the road to Bitcoin glory isn't without its bumps. Legal barriers currently prevent municipalities from hoarding cryptocurrency as reserves. The provincial government has made it clear that using Bitcoin for transactions or investments is a no-go under existing law.
The Ministry of Housing and Municipal Affairs chimed in, reminding everyone that local governments have to play it safe with their financial moves. Public funds are tightly regulated, limited to secure, approved options to keep things stable.
So, while Vancouver’s Bitcoin dream is off to a spirited start, there’s still some navigating to do through the legal labyrinth. Stay tuned as this crypto saga unfolds!
