- Vancouver city staff disqualified Bitcoin as an allowable investment under the Vancouver Charter municipal finances.
- Officials advised the council to stop the Bitcoin reserve study and focus on other city priorities.
- The Bitcoin-friendly proposal was introduced in 2024 by Mayor Ken Sim to diversify reserves and purchasing power.
Vancouver Bitcoin Reserve Plan is facing a major setback after city officials recommended ending the initiative. The reviewing staff concluded that Bitcoin does not qualify as an allowable asset under the Vancouver Charter governing city finances.
Legal Review Finds Bitcoin Not Allowed Under City Investment Rules
City staff recently submitted a report advising the council to withdraw the Vancouver Bitcoin Reserve Plan. The recommendation followed a detailed legal review of the Vancouver Charter.
According to the report, the charter strictly defines which assets the city may hold in financial reserves. Bitcoin does not appear on that list of permitted investment instruments.
Because of this limitation, staff concluded that the city cannot legally allocate public funds to Bitcoin. The report therefore, recommended ending the work related to the proposal.
Officials also cited operational priorities when explaining the recommendation. They said resources should instead focus on other municipal projects currently under review.
The broader evaluation analysis of council initiatives was introduced between 2018 and 2025 to examine 181 policy actions.
According to their report, 103 projects have already been completed, and the remaining 78, including the Vancouver Bitcoin Reserve Plan, are being reassessed.
Mayor Ken Sim Introduced the Bitcoin-Friendly Proposal in 2024
The Vancouver Bitcoin Reserve Plan began in November 2024 when Mayor Ken Sim introduced a motion to diversify the city’s reserves.
The proposal carried the title “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming a Bitcoin Friendly City.” It aimed to explore Bitcoin adoption within municipal finances.
Under the motion, city staff were asked to study two ideas. One involved converting a small portion of reserves into Bitcoin.
Sim described Bitcoin as a transformative financial technology. To show his emphasise he pledged to donate $10,000 worth of Bitcoin to the city if the proposal moved forward.
Volatility and Risk Concerns Also Shaped the Recommendation
Officials reviewing the Vancouver Bitcoin Reserve Plan also referenced risk concerns raised earlier by provincial authorities.
The British Columbia Ministry of Municipal Affairs had previously warned that municipalities cannot hold financial reserves in cryptocurrencies.
The ministry stated that exposure to crypto markets could introduce what it described as undue financial risk for local governments.
Source: CoinGecko
Bitcoin reached an all-time high of $126,000 before dropping nearly 50 percent to lows around $63,000.
With staff now recommending the closure of the Vancouver Bitcoin Reserve Plan, the council must decide whether to withdraw the initiative formally.