Vancouver city staff recommend abandoning the mayor's Bitcoin reserve proposal after determining crypto falls outside allowable investments under the Vancouver Charter.
Vancouver's ambitious plan to add Bitcoin to its city reserves has been killed by its own finance department, which found the volatile digital asset is not legally permitted under British Columbia's municipal investment rules.
Vancouver city staff released a report concluding that Bitcoin does not qualify as an "allowable investment" under the Vancouver Charter, the provincial legislation that governs the city's financial operations. The recommendation is to formally abandon the Bitcoin reserve plan when council votes on March 10.
The proposal originated from Mayor Ken Sim in late 2024. Titled "Preserving the City's Purchasing Power Through Diversification of Financial Reserves," the motion framed Bitcoin as a hedge against inflation and a step toward making Vancouver a "Bitcoin-friendly city." Council passed it 6-2 at the time, directing staff to study the feasibility.
The Vancouver Charter restricts municipal investments to low-volatility instruments such as government bonds and guaranteed investment certificates (GICs). Staff determined that Bitcoin, with its price swings and regulatory uncertainty, falls outside these statutory boundaries.
This outcome matters because Vancouver was one of the most prominent North American cities exploring a Bitcoin treasury strategy. While the U.S. federal government and several states have advanced their own Bitcoin reserve discussions, the Vancouver case shows that existing financial regulations can block such efforts at the municipal level. Other cities considering similar moves will need to address the same legal question: does existing law permit holding volatile digital assets with public funds?
Council is expected to vote on the staff recommendation on March 10. If approved, Vancouver will join a growing list of municipalities that studied Bitcoin reserves but concluded they cannot move forward under current law. The decision could influence other Canadian cities weighing similar proposals. Advocates may push for legislative changes at the provincial level to expand the list of allowable investments.
Vancouver's Bitcoin reserve experiment highlights the gap between political ambition and regulatory reality. Even where elected officials support crypto adoption, existing financial frameworks may not yet accommodate digital assets in public treasuries.
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