Bank

2024

<p class="is-style-lead">On December 11, Vancouver city councilors voted in favor of Mayor Ken Sim’s motion to make the city “Bitcoin-friendly” and authorize staff to look into holding cryptocurrency in reserve.</p> 
<p>Mayor Ken Sim, who has been serving as mayor of Vancouver since 2022, said to <a href="https://www.cbc.ca/" target="_blank" rel="nofollow">CBC</a> that he thinks investing in Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank">BTC</a>) is financially responsible in an era of inflation and market volatility and even agreed to donate $10,000 worth of BTC to the city from his personal holdings. City officials will now work to see if BTC can be incorporated into the city’s financial strategies and whether it can invest in cryptocurrency by converting a portion of Vancouver’s current <a rel="" href="https://crypto.news/alabama-state-auditor-pitches-bitcoin-reserve/">financial reserve</a>. The motion’s passing is in accordance with the city’s <a href="https://vancouver.ca/files/cov/council-approves-budget-property-tax-increase-with-infrastructure-investment.pdf" target="_blank" rel="nofollow">2025 budget</a> plan. </p> 
<p>The motion, which was filed in November, stated that it would be “irresponsible” if the city did not evaluate the “merits” of incorporating BTC into its strategic assets, in order to stabilize the city’s financial standing. This would cover accepting taxes and fees in BTC. Capped at a supply of just <a href="https://crypto.news/from-zero-to-millions-experts-back-new-defi-token-to-outshine-ethereum-and-cardano/" target="_blank">21 million</a> coins, BTC has frequently been described as a <a rel="" href="https://crypto.news/blackrock-ceo-bitcoin-is-digital-gold/">digital version</a> of gold, one that may serve as a store of value that shelters from inflationary pressures.</p> 
<p> You might also like: <a rel="" href="https://crypto.news/maga-strump-memecoins-tumble-amid-trump-medias-new-sec-filing/"> MAGA, STRUMP memecoins tumble amid Trump Media’s new SEC filing </a> </p> 
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    <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/VanCityCouncil?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">#VanCityCouncil</a> approves motion 3. Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.</p>— Vancouver City Clerk (@VanCityClerk) <a href="https://twitter.com/VanCityClerk/status/1866988118496383021?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">December 11, 2024</a>
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   Vancouver City Council moves forward with a Bitcoin-friendly motion to diversify financial reserves.
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    <p lang="en" dir="ltr">Today, Vancouver City Council approved the 2025 budget, delivering a tax increase of just 2.9%, with an additional 1% dedicated to renewing critical infrastructure such as water and sewer lines.&nbsp;&nbsp;&nbsp;<br>&nbsp;<br>We're investing in a stronger, safer, and more affordable city without cutting… <a rel="nofollow" href="https://t.co/owtQMeSJmC" target="_blank">pic.twitter.com/owtQMeSJmC</a></p>— Mayor Ken Sim (@KenSimCity) <a href="https://twitter.com/KenSimCity/status/1866609414192648649?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">December 10, 2024</a>
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<p>The mayor says he sought advice from the city’s auditor general before formulating his motion. Leading the way were several speakers, including experts such as Victoria Lemieux, head of the Blockchain research cluster at the University of British Columbia, for whom support for the council’s decision was a no-brainer. However, there have been concerns over the environmental footprint of BTC mining, as well as the volatility of cryptocurrency, making it a questionable option for city financial reserves. Lemieux also said, “<em>Mining BTC would take a lot of energy</em>” to CBC. </p> 
<p> You might also like: <a rel="" href="https://crypto.news/sec-charges-3-people-in-2-9m-bitcoin-scam/"> SEC charges 3 people in $2.9m Bitcoin scam&nbsp; </a> </p> 
<h2 class="wp-block-heading" id="can-bitcoin-be-used-as-a-reserve-asset-in-vancouver">Can Bitcoin be used as a reserve asset in Vancouver?</h2> 
<p>The <a href="https://laws-lois.justice.gc.ca/eng/acts/B-2/section-18.html?txthl=currencies+act" target="_blank" rel="nofollow">Bank of Canada’s</a> Currency Act prevents cities from being able to send BTC as payment for local expenditures or even hold it as a reserve because they are confined to investments which do not come with financial risk. It goes on to explain that the only legal currency is physical money such as notes and coins, made and issued by the Bank of Canada or the Royal Canadian Mint. Crypto is considered a commodity and not money under Canadian law, according to the <a href="https://www.canada.ca/en/revenue-agency.html" target="_blank" rel="nofollow">Canada Revenue Agency</a>.&nbsp;</p> 
<p>However, <a href="https://laws-lois.justice.gc.ca/eng/acts/b-2/page-3.html#h-24146" target="_blank" rel="nofollow">Section 27.1</a> of the Bank of Canada Act permits the Bank to create a special reserve fund to absorb unrealized valuation losses resulting from movements in the fair value of the Bank’s investment portfolio. Although this provision does not directly address cryptocurrencies, it creates leeway regarding the assets the Bank of Canada could evaluate. While legislative changes would be required, Vancouver’s motion signals a potential shift toward integrating BTC into official financial portfolios. The motion, therefore, could indicate a readiness for Vancouver to contest the current status quo.&nbsp;</p> 
<p> Read more: <a rel="" href="https://crypto.news/3-85b-in-weekly-crypto-investment-inflows-new-records/"> Crypto Investment Products hit a new weekly inflows record at $3.85B; total yearly intake reaches $41B </a> </p>

Vancouver City Council passed motion to make the city “Bitcoin-friendly”

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