Previously, the Canadian government issued a series of stringent regulations on the cryptocurrency industry, causing many eager and well-known exchanges like Binance, Bybit, OKX, and Bitstamp to leave the Canadian market within a year. However, not all regions of Canada are 'unfriendly' toward cryptocurrencies; Vancouver, one of Canada's four major cities, has proposed a plan to incorporate Bitcoin into municipal finances and aims to become a 'Bitcoin-friendly city.'
Vancouver's mayor has drafted a 'Bitcoin-Friendly City' plan.
Vancouver Mayor Ken Sim previously proposed a plan to attract public attention, preparing to include Bitcoin in municipal finances. The proposal, titled (Maintaining City Purchasing Power Through Diversified Financial Reserves - Creating a Bitcoin-Friendly City), will be submitted to the Vancouver City Council for discussion on 12/11. Since Sim's ABC party holds a majority in the council, the proposal has a good chance of passing.
The Canadian government will discuss the Bitcoin-friendly city proposal on 12/11. The Trump phenomenon has driven Bitcoin to new highs, creating opportunities for municipal applications.
With Trump’s election and the announcement to relax cryptocurrency regulations, a series of effects led Bitcoin prices to reach a historic high of 100K. Sim believes this is a good opportunity to advance Vancouver as a Bitcoin-friendly city. He stated that if Bitcoin is used as a municipal financial tool, it can not only combat traditional currency inflation but also showcase Vancouver's innovative image.
Diversification of municipal finances, accepting Bitcoin for tax payments or depositing into reserves.
This proposal asks the Vancouver government to evaluate how to integrate Bitcoin into municipal finances, including accepting Bitcoin for tax payments and related municipal fees, and even converting part of the city government's financial reserves into Bitcoin.
Vancouver has a long history with cryptocurrency and has the necessary conditions.
Vancouver has already been a hotspot for cryptocurrency. In 2013, the world's first Bitcoin ATM was installed in Vancouver, which continues to attract many new blockchain entrepreneurs, such as the well-known game developer Dapper Labs, the cryptocurrency financial service provider Amber Group, and the mining company Hive Blockchain. These reasons lead Sim to believe that Vancouver has the foundational conditions to become a 'Bitcoin-friendly city.'
Learning from international experiences, from El Salvador to Zug in Switzerland.
In Sim's 'Bitcoin-Friendly City' proposal, he also cites successful experiences from other countries. He noted that El Salvador recognized Bitcoin as legal tender as early as 2021, and the city of Zug in Switzerland became the first city in Switzerland to accept Bitcoin for local tax payments in 2016. Sim hopes the Vancouver government can use these cases as references, not only to demonstrate the potential benefits of Bitcoin for local governments but also to lead the way in Canada's digital innovation.
(1 day dollar cost averaging 1 BTC! El Salvador's president publicly shares wallet: This is our country's Bitcoin savings bank)
The environmental issue of Bitcoin mining is key.
The proposal indicates that Bitcoin mining can use excess renewable energy and methane waste to reduce carbon emissions and even enhance the economic feasibility of renewable energy projects. Although the proposal emphasizes environmental potential, some experts hold differing views. In 2022, the BC provincial government in Canada paused approvals for new mining projects to protect hydropower resources and stated that overdevelopment could impact environmental conservation. This tug-of-war between 'environmental protection' and 'technological development' has become key to whether the proposal passes.
(Former presidential candidate Robert F. Kennedy Jr. refutes the Economist's argument that Bitcoin mining consumes too much energy)
This article, Vancouver's Mayor Proposes Bitcoin Reserves: Learning from El Salvador and Switzerland to Create a Bitcoin-Friendly City, first appeared in Chain News ABMedia.
