The motion could expose the City of Vancouver to substantial financial risk - and potentially enrich the Mayor himself
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Vancouver (Musqueam, Squamish, and Tsleil-Waututh territories) – Today, Vancouver City Council will consider a motion from Mayor Ken Sim that could personally enrich the Mayor - and expose the City of Vancouver to unacceptable financial risk.
The Mayor’s motion aims to make Vancouver a “Bitcoin Friendly City” by asking City staff to examine accepting taxes and fees in Bitcoin, as well as to examine “the potential conversion of a portion of the City’s financial reserves into Bitcoin”.
“This motion exposes the City of Vancouver to financial risk, and could potentially enrich Ken Sim himself,” said Liz Locke, Co-Chair, OneCity Vancouver. “Ken Sim only has one vote at City Hall. ABC councillors must ask themselves if they want to put the city's finances at risk by indulging Ken Sim’s fascination with cryptocurrency. If not, they must reject this motion.”
Does Ken Sim have a financial interest in Bitcoin’s success?
Ken Sim’s financial disclosure from 2024 demonstrates that he had a financial stake in the success of Bitcoin at that time - investing in cryptocurrency exchanges, and even in a fund whose value tracks Bitcoin itself.
The financial disclosure showed that he was, at the time, invested in the following companies and funds - thereby having a financial stake in the success of Bitcoin:
- Coinbase, one of the largest cryptocurrency exchanges in the world.
- MGT Capital Investments, a Bitcoin mining company.
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BTCC.B (Purpose Bitcoin ETF), an exchange traded fund that allows investors to invest in Bitcoin via the public markets. As the fund’s website states:
- This isn’t just a claim to paper like Bitcoin futures, it’s the real deal. When you buy the ETF, we buy real Bitcoin with your money. By holding this ETF, you hold actual Bitcoin in your portfolio.
As Ken Sim admitted himself, large-scale investment in Bitcoin from institutions and governments helps bolster investor confidence in the cryptocurrency. As he said in an interview on December 4:
“When you have BlackRock, when you have Fidelity, when you have sovereign nations … when you have El Salvador, you have Bhutan, and then the US … all these things help change the conversation from ‘you know, this isn’t even real, this is a scam, it doesn’t make any sense’ to ‘wait a sec, there’s something here’.”
If Sim is still invested in these companies, he could profit financially from the successful passage of this motion.
Prior to the vote, Ken Sim must disclose if he still has a financial stake in the success of Bitcoin.
Bitcoin exposes the City of Vancouver to substantial financial risk
Wrapping up the City’s finances with Bitcoin and other cryptocurrencies would subject our city to the highs and lows of crypto valuations. Just this year Bitcoin has fluctuated 122% (Source). In May 2023 it plummeted 53%. In 2022, El Salvador’s Bitcoin investments, heralded by Mayor Sim in his motion as an inspiration for Vancouver, “lost about 60 percent of their presumed value” to a crash (Source, NY Times).
“Gambling money on the hopes of a big payday in the future is a better fit for a casino than City Council,” continued Locke. “Institutions, individuals, and Mayor Sim can choose to gamble on Bitcoin and crypto if they wish. But not with public dollars.”
ABC must reject Ken Sim’s motion
In a time when many Vancouverites are struggling to keep up with the cost of rent and groceries, Sim has chosen instead to focus Council resources on pushing forward the purchase of unstable cryptocurrency with your money.
Vancouver deserves a Mayor and a City Council that is concerned with the needs of residents - not tying up tax dollars in speculative investments and potentially enriching himself. OneCity is committed to fighting for more of what Vancouver actually needs: frequent transit, lower housing costs, and fully funded schools. We’re focused on fighting for you.