The Mayor of Vancouver, Ken Sim, is an authentic Bitcoin aficionado who’s making strides to help Vancouver’s city council and its residents understand his vision regarding Bitcoin.
And his endeavors are beginning to yield results.
On December 11, 2024, the Vancouver City Council approved a motion that Mayor Sim had prepared to transform Vancouver into a more Bitcoin-friendly city.
This motion instructs city staff to investigate the possibility of Vancouver forming a strategic Bitcoin reserve and accepting taxes and city fees in Bitcoin.
In my dialogue with Mayor Sim, we talked about the approval of this motion as well as his deeper philosophical reflections on Bitcoin.
We also addressed what Bitcoin adoption in Vancouver would entail in an ideal scenario, his own expedition down the proverbial Bitcoin rabbit hole, and how Bitcoin can offer financial optimism to the residents of Vancouver at a time when many individuals are struggling financially.
The Vancouver City Council has recently approved your motion to make Vancouver a more Bitcoin-friendly city.
On a personal note, if you could wave a magic wand and facilitate any level of Bitcoin adoption you envision for Vancouver, what would that entail?
I need to clarify that these are my personal opinions. We have a remarkable team at the City of Vancouver, and they have been assigned to explore these ideas. So, it’s not as if I can just direct the team and say, “You must do this and that.”
Ideally, the first action we would take is to build a strategic reserve. Next, we would enable people to carry out transactions using Bitcoin without incurring capital gains tax implications and to accept payments in Bitcoin form. Tax legislation, not only in Canada but also in the U.S. and other areas, still lags behind, so every time you conduct a transaction with Bitcoin, you incur a capital gains tax, which is quite burdensome.
The third point is to initiate discussions and dispel myths around beliefs like Bitcoin being detrimental to the environment. That’s all nonsense, right? Bitcoin can actually assist in preserving the environment.
Furthermore, it provides us with an unchangeable record and contributes to a degree of transparency we’ve never experienced in human history. Incorporating that into our systems would be fantastic.
You mentioned the significance of educating people about Bitcoin on Natalie Brunell’s program. You said you “shower them with love and then you hit them with facts.” Can you illustrate what this approach looks like?
There’s significant resistance toward Bitcoin, especially regarding its alleged environmental impacts. People are inundated with the narrative that it harms the environment, and they think, “Wait a second…”
I’m an environmental advocate, and I understand that if you compel organizations worldwide to undertake actions for which they lack incentives, nothing will occur. However, if you encourage them — if you implement a reward structure — it’s remarkable.
So, what do we understand? Well, we burn off natural gas as a by-product of oil production, and if we manage to capture that and use it for Bitcoin mining, it’s actually beneficial for the environment. The same goes for harvesting methane that escapes from the earth.
Additionally, with renewable or green energy sources, such as wind or solar power, where the economics often don’t align to establish these ventures, providing a guaranteed customer in the form of Bitcoin miners allows these projects to become financially viable. Thus, it’s a net benefit for the environment.
There’s also this erroneous notion that malfeasance occurs with Bitcoin. That’s absurd, right? Cash is untraceable. With Bitcoin, we’re talking about a permanent record where every single transaction can be tracked from inception, enabling us to monitor activities effectively.
Some narratives are the complete opposite of reality, so we must counter these misconceptions.
From my observations, teaching someone something is straightforward, while unlearning is decidedly harder, and we are in the midst of aiding individuals in discarding preconceived notions.
You have described Bitcoin as the most significant invention in human history. Could you elaborate on that?
Our financial system is flawed. People are unable to use it to save their energy for the future. We are caught in this repetitive cycle. In Ray Dalio’s book The Changing World Order, he discusses the ascension and decline of the Dutch empire, the rise and fall of the British empire, and the rise and, as he describes, the decline of the U.S. empire. If you accept Dalio’s view, the crux of the matter is that the financial system is broken.
We have never had a reserve currency that has endured. We keep reliving history. However, Bitcoin alters this narrative. As we all recognize, it cannot be manipulated or tampered with. It’s a transformative concept, and when we ultimately transition to the Bitcoin standard — I believe it’s a matter of when, not if — it will revolutionize how individuals interact and how nation-states progress.
You just referenced one of Ray Dalio’s books, and I’ve heard you speak about other readings like The Bitcoin Standard and Layered Money. You also have a friendship with Jeff Booth. With all the literature you’ve consumed and the dialogs you’ve had with Jeff, did you experience a lightbulb moment regarding Bitcoin, or was it more of a gradual evolution?
Actually, I experienced the opposite of a lightbulb moment when my son Mitchell approached me saying, “Dad, I want to buy Bitcoin.” My response was, “If you touch that, I’m going to punch you in the throat.” Naturally, I wasn’t actually going to do that.
Afterward, as I began to notice more discussions and engaged with Jeff, I delved into research, read extensively, and attended several conferences. My journey mirrored many others; I was initially against it, then I gradually became more receptive and ultimately turned into an advocate.
I can’t pinpoint a specific moment that transformed my perspective dramatically. However, I remember making my first $500 Bitcoin purchase on November 14, 2020. The reason for my delay was my need to learn how to navigate the app to make the purchase. It was quite clunky — just a hassle.
But I recall that day vividly because when I finally made the purchase, I wondered, “Did I miss the opportunity?” I think I bought it at around 16 or 17 thousand while it had risen from around seven or eight thousand the month prior. I thought, “Did I let it pass me by?” I remember Jeff reassuring me, “No, you’re still very early; we’re all still very early.”
You’ve mentioned the unaffordability of housing in Vancouver. Does Bitcoin provide a solution?
Indeed. Let me illustrate an example. We have a modest studio rental in Whistler (a town located north of Vancouver). When we purchased it, it would have cost 17.2 Bitcoin, roughly four years ago. In dollar terms, the property’s value has increased by 36%, yet when considering Bitcoin, its value has decreased by about 85%. Currently, it requires approximately 3.3 Bitcoin to acquire it.
By the way, I’m not offering investment counsel. I’m merely discussing a theoretical scenario of how this might unfold. If at some point in the near future, one could purchase a house in Vancouver for one Bitcoin, that implies you can literally acquire a house for about US$106,000 or approximately CA$150,000 if you were to buy a Bitcoin today.
I’m not advising individuals to take out loans to invest in Bitcoin — quite the opposite. Seek financial guidance. However, if you believe in the continued appreciation of Bitcoin’s price, it’s conceivable that you could buy a house for CA$150,000 in the near future simply by acquiring a Bitcoin at present.
You’veintroduced Bitcoin, a controversial topic, into the discourse as the Mayor of Vancouver, and you’ve mentioned that this may impact your chances of being re-elected. Have you ever contemplated the possibility that the reverse could occur, and that by supporting Bitcoin the citizens of Vancouver might actually wish to re-elect you?
I’m not overly worried about that. I have no ambition to be a premier or a prime minister. I’m not a politician, despite my current role, which I genuinely respect, appreciate, and take very seriously. However, the aim was never to gain popularity. The aspiration was never to secure re-election. The intention was to do what I believe is best for the future of the City of Vancouver.
Therefore, I could no longer remain passive and disregard this because I firmly believe that it positions the city for the next century. Am I accurate? We cannot say for certain, but we have a strong intuition, and I wholeheartedly believe in it.
I think that voters, residents — irrespective of their political affiliations — are tired of politicians who act solely for the purpose of re-election. They desire leaders who pursue what they believe to be right, and I believe this is righteous. If we don’t get re-elected because of it, I can personally hold my head high and assert, “You know what? We adhered to our principles and acted rightly.” If it pays off, fantastic. I genuinely think it will.
It appears that a forward-thinking city like Vancouver — the first municipality in Canada to host a Bitcoin ATM — should advocate for Bitcoin. Nevertheless, the former mayor attempted to prohibit Bitcoin ATMs in the city. Did the community of Vancouver react in any way when this occurred?
I didn’t monitor it closely at that time, so I’m not sure. I can’t provide commentary on it. What I can address is that we have many politicians who formulate policies based on virtue signaling rather than data. We are a data-driven administration, and we prioritize the future well-being of our city.
The key difference here is that we choose to create the most significant impact — we care more about substance than appearance. If anyone can present an argument on why this is a poor idea supported by data, we will heed it. We might be mistaken, but I can assure you that no one has successfully challenged our Bitcoin position with data.
Bitcoin can be somewhat challenging to utilize from a technical standpoint. So, let’s imagine, in a perfect scenario, Bitcoin becomes legal tender in Vancouver someday, or if there’s simply broader adoption of it; do you worry about the technical challenges related to using Bitcoin? Would the Vancouver city government ever contemplate educating its residents about Bitcoin?
It’s not one of the primary services we provide as a city, so I don’t foresee us venturing into the educational realm. We’ll let other experts handle that.
As the industry simplifies Bitcoin usage, many more groups and individuals will join the movement. And we know this is forthcoming because there are many individuals currently working on this.
I’m not a specialist, but when I hear about developments happening on Layer 2s and the Lightning Network, I envision a future where this is effortless. When individuals enter a Walgreens and purchase a candy bar, they won’t think about using Bitcoin. All the underlying mechanisms will operate unbeknownst to them, and it will transform the world.
You’ve participated in several interviews on this subject so far. Is there anything that we in the media haven’t covered that you’d like to mention or highlight?
Yes, I’d like to issue a broad call and not just for the city of Vancouver. It’s aimed at every single city and province, state, jurisdiction, canton, and country globally.
We must disseminate education, which remains a challenging endeavor. Some media representatives have remarked that what we’re currently doing is merely virtue signaling, as we aim to make this a reality. This is inaccurate, however.
We need Bitcoin advocates to begin promoting the authentic narrative of why Bitcoin is a credible financial asset. It has been the top-performing asset on the planet over the past 16 years. And we’re not traders, so if you’re not inclined to engage in day trading, all of the volatility becomes irrelevant.
We need to start spreading that message, but not from me; it has to come from the community. We need to inform our elected officials about this because they won’t act until they’re presented with data and told by the public that they want this.
We’re pursuing this because we believe in it. We aim to stay ahead of the curve. We want to prepare the city for the next century, and that’s why we are prepared to take political risks to make it happen. But we require assistance. So, if your audience can help us advocate that message with our provincial government and within their own jurisdictions as well, that would be tremendously helpful.
If citizens begin to recognize how Bitcoin could alleviate some of their financial burdens, do you think Vancouver could quickly evolve into a pro-Bitcoin city?
Yes.
I recall my sister-in-law, who if she views this video will probably punch me! About 13 years back, she was hesitant to get an iPhone. She was confused by the technology. It was a psychological barrier.
Then, she jumped on the bandwagon like everyone else, once all her friends had iPhones. It’s absurd now to consider that people were once apprehensive about iPhones, isn’t it?
Will Bitcoin offer us hope? Definitely.
I return to the City of Vancouver and why this matters so much. The City of Vancouver faces the same challenges as everyone else. While people struggle to afford homes or manage grocery expenses, we allocate a budget.
We need to employ police officers, firefighters, engineers, and we’re functioning in an environment where our currency is being devalued, and we can’t increase taxes at a pace that keeps up with that. We want to avoid service cuts, and therefore Bitcoin presents us with hope that we can rectify our financial situation, our balance sheet.
This will genuinely assist us in managing this city for the next century. I believe that as people understand Bitcoin and begin to adopt it, they too will find hope, as they will realize their purchasing power is increasing, which is a remarkable development.
