Previously, the Canadian government's introduction of a series of strict regulatory measures on the cryptocurrency industry led many well-known exchanges such as Binance, Bybit, OKX, and Bitstamp to exit the Canadian market within a year. However, not all regions of Canada are "unfriendly" towards cryptocurrencies. As one of Canada's four major cities, Vancouver has proposed a plan to "incorporate Bitcoin into municipal finances" and plans to become a "Bitcoin-friendly city".
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ToggleVancouver Mayor Proposes "Bitcoin-Friendly City" Plan
Vancouver Mayor Ken Sim previously proposed an attention-grabbing plan to incorporate Bitcoin into municipal finances. This proposal, titled "Maintaining City Purchasing Power Through Diversified Financial Reserves - Building a Bitcoin-Friendly City", will be submitted to the Vancouver City Council for discussion on 12/11. Given that Sim's ABC party holds a majority in the council, the proposal has a good chance of being passed.
Trump Phenomenon Drives Bitcoin to New Highs, Becomes Municipal Use Opportunity
With Trump's election and his announcement to relax cryptocurrency regulations, a series of effects have led to Bitcoin prices reaching a historic high of $100K. Sim believes this is a good opportunity to push Vancouver to become a Bitcoin-friendly city. He stated that if Bitcoin is used as a municipal finance tool, it can not only hedge against traditional currency inflation, but also showcase Vancouver's innovative image.
Diversifying Municipal Finances, Accepting Bitcoin for Taxes or Storing in Reserves
This proposal requires the City of Vancouver to evaluate how to integrate Bitcoin into municipal finances, including accepting Bitcoin for taxes and related municipal fees, and even converting a portion of the city's financial reserves to Bitcoin.
Vancouver's Cryptocurrency History is Long, with Favorable Conditions
Vancouver has previously been a hotspot for cryptocurrencies. In 2013, the world's first Bitcoin ATM was installed in Vancouver, and it still attracts many blockchain startups, such as the renowned game developer Dapper Labs, the crypto financial services provider Amber Group, and the mining company Hive Blockchain. These factors make Sim believe that Vancouver has the basic conditions to become a "Bitcoin-friendly city".
Drawing on International Experience, from El Salvador to Switzerland's Zug
Sim's "Bitcoin-Friendly City" proposal also cites the successful experiences of other countries. He cited the example of El Salvador, which made Bitcoin legal tender as early as 2021, and Zug, Switzerland, which became the first Swiss city to accept Bitcoin for local taxes in 2016. Sim hopes that the City of Vancouver can refer to these cases, not only to demonstrate the potential benefits of Bitcoin for local governments, but also to be at the forefront of Canada's digital innovation.
(1 BTC a Day! Salvadoran President Publicly Shares Wallet: This is My Country's Bitcoin Piggy Bank)
Bitcoin Mining Environmental Issues as a Key Concern
The proposal points out that Bitcoin mining can use surplus renewable energy and methane waste to reduce carbon emissions, and even improve the economic viability of renewable energy projects. While the proposal emphasizes the environmental potential, some experts hold different views. In 2022, the government of the BC province in Canada temporarily suspended the approval of new mining projects to protect hydroelectric resources, and even stated that excessive development may affect environmental conservation. This tug-of-war between "environmental protection" and "technological development" has become a key factor in the passage of the proposal.
