City staff in Vancouver have recommended that the city council drop the proposal to establish a Bitcoin reserve. The recommendation came after reviewing the motion titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Resources - Becoming A Bitcoin Friendly City,” and the staff concluded that it would violate existing regulations. The plan was first introduced in November 2024 by Mayor Ken Sim. The motion suggested allocating a portion of the city’s reserves to Bitcoin.
City Staff Calls Bitcoin Reserve “Not Allowable”
In a recent report to the council, the city staff said the plan cannot proceed under the Vancouver Charter, the provincial legislation that governs municipal operations. The report said, “Staff has conclusively determined that under the Vancouver Charter, Bitcoin is not an allowable investment asset for the City, and therefore recommends that this work be concluded.”
The review also noted that staff resources should be redirected to other priorities and city initiatives. The motion initially received council approval in December 2024, directing staff to study the feasibility of building a Bitcoin reserve. Meanwhile, the Ministry of Municipal Affairs of British Columbia has stated that local governments are not permitted to hold cryptocurrency in their financial reserves due to concerns about “undue risk.”
Bitcoin has experienced significant price volatility, rising above $126K before dropping by about 50% to $64K within four months. Bitcoin is currently trading at $70K.
