The City Council #Vancouver has just approved a study to integrate Bitcoin into the financial system, despite legal barriers and environmental concerns.
1. Vancouver's bold action
The city of Vancouver, which installed the first Bitcoin ATM in 2013, is aiming to become a 'Bitcoin-friendly' city. At the meeting on Wednesday, the City Council approved a proposal from Mayor Ken Sim, directing the study of the feasibility:
• Accept tax and fee payments in Bitcoin.
• Convert a portion of the city's financial reserves into $BTC to mitigate the impact of inflation and currency volatility.
2. Legal barriers and opposing views
• Legal: The Ministry of Interior of the province of British Columbia asserts that cryptocurrency is not recognized as a legal method of payment for local governments.
• Dissenting views:
• ABC Vancouver supports the Bitcoin study, with Mayor Sim arguing that not considering Bitcoin in the investment portfolio is 'irresponsible'.
• The Green Party opposes, expressing concerns about money laundering and the environmental impact of Bitcoin mining.
3. City's commitment
Despite concerns, Mayor Sim is committed to donating $10,000 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 assess the integration of Bitcoin into public finance.
Expectations and prospects
This move comes as Bitcoin has just surpassed the $100,000 price mark, with major financial institutions like BlackRock and Fidelity also pushing for the adoption of cryptocurrency. Vancouver could become a pioneering city if it successfully completes the study and overcomes current legal barriers.
