According to The Block, staff in the City of Vancouver, Canada, submitted a report to the city council recommending the withdrawal of the previously proposed resolution, “Protecting the City’s Purchasing Power Through Diversified Financial Reserves—Becoming a Bitcoin-Friendly City.” The report stated that, following a legal review, it was determined that under the Vancouver Charter (the provincial legislation governing Vancouver’s municipal operations), Bitcoin is not an authorized investment asset for the city. The proposal was introduced by Vancouver Mayor Ken Sim in November 2024, aiming to allocate a portion of municipal funds into Bitcoin to hedge against inflation and volatility. The Vancouver City Council had approved the proposal in December 2024 and requested staff to assess its feasibility. At the time, British Columbia’s Ministry of Municipal Affairs stated that local governments, including Vancouver, are not permitted to hold financial reserves in cryptocurrencies due to exposure to “inappropriate risk.”
Vancouver city staff recommend revoking the Bitcoin reserve proposal.
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Summary
Vancouver city staff have recommended withdrawing the proposal to invest municipal funds in Bitcoin due to legal restrictions under the Vancouver Charter. The proposal, supported by Mayor Ken Sim in November 2024 and approved by the council in December, aimed to diversify the city’s reserves. A legal review determined that Bitcoin is not an permitted investment under provincial law. The British Columbia Ministry of Municipal Affairs has also cautioned against holding cryptocurrency due to CFT risks and other concerns. The approval of a Bitcoin ETF earlier this year did not alter the province’s position on municipal crypto investments.
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