Vancouver Mayor Ken Sim’s Bitcoin Obsession
Ben Taylor (He/Him) // Crew Writer
Alex Baidanuta (She/Her) // Illustrator
In December 2024, Vancouver Mayor Ken Sim proposed a motion to make Vancouver a “bitcoin friendly city.” The motion outlined that this initiative would be put into action by “undertaking a comprehensive analysis of the potential to integrate Bitcoin into the City of Vancouver’s financial strategies, such as—but not limited to—accepting taxes and fees in Bitcoin as well as the potential conversion of a portion of the City’s financial reserves into Bitcoin to preserve purchasing power and guard against the volatility, debasement and inflationary pressures of traditional currencies.” Essentially, getting Vancouver to run as much as possible on decentralized crypto-currencies, to ‘future proof’ the city against the instability and fluctuation of the Canadian dollar. It is important to recognize just how radical this change would be; as this would mean using tax dollars to buy/invest in Bitcoin. No other major city in the world currently has any financial reserves held in Bitcoin except for Roswell, New Mexico, which has a population of less than 50,000 people. According to Coin Gecko, the value of their initial $3500 investment has fluctuated over $1500 dollars since the start of October, showing just how volatile this currency can be.
Sim, in addition to advocating for Bitcoin as mayor, is also a major investor in various crypto currencies and related exchanges, as detailed in his financial statements. A firm believer in the future of crypto, Sim defended his motion in an interview with the CBC, stating that Bitcoin “is basically perfect money.” When asked about a potential conflict of interest due to his financial stake in the currency, he replied “No, not at all.” However, various critics disagree with Sim’s faith in the digital currency, claiming that a move to incorporate bitcoin into Vancouver’s finances would be a major mistake. Prominent Vancouver business person Frank Giustra referred to Sim’s crypto plan as being “incredibly reckless and stupid.”
In another interview with the CBC, law professor Dan Rohde took issue with crypto’s often capricious nature, stating, “It’s extremely risky to frankly have a bitcoin reserve,” warning of a scenario wherein public funds are diminished during a dip in Bitcoin’s value. Students of the Motion Picture Arts program (MOPA) here at Capilano University were also quite critical of the motion. One student responded, “it’s a baseless and aimless goal […] because there’s so many other issues that need to be dealt with.” Another stated “it’s a hilariously bad idea,” and pointed out that Canada is the only G7 country that does not hold any of the federal reserve in gold. On this subject, Sim has argued, “There’s a whole bunch of reasons why bitcoin is far superior to gold,” claiming, “Gold is basically an analog version of bitcoin.”
Despite the motion ultimately passing, a representative from the Ministry of Housing and Municipal Affairs in B.C. clarified that under current law, “local governments, including the City of Vancouver, are not permitted to hold financial reserves in cryptocurrency.”
Cole Godwyn, a local Bitcoin proponent and head of business development at Coinos, believes that Sim’s plan is “a smart, forward-looking idea.” He points to Vancouver’s history with bitcoin, including being the world’s first city to open a Bitcoin atm back in 2013, indicating that the city has always been at the forefront of developments in digital currencies. He also reinforces Sim’s point about the safety of Bitcoin, and pointed out that due to inflation, the Canadian dollar’s value has dropped significantly in the last 30 years. Cole suggests that the mayor’s plan could work if implemented step by step, “Start small, use super-secure storage with regular audits, let people pay some fees in Bitcoin (with instant conversion to dollars if needed), and use BC’s extra clean hydropower for any mining.”
While the motion was passed in December of 2024, since the provincial legislation prevents the holding of cryptocurrency in the city’s reserves, there have been no further updates to the plan. Unless that changes, it is difficult to see any way for Sim to move forward with his plan. But, that doesn’t stop him from promoting the currency that he calls, “the greatest invention in human history.”