Vancouver staff urge council to drop Bitcoin reserve plan over legal limits

Vancouver city staff urged the council to withdraw a plan to create a Bitcoin reserve after a legal review concluded the Vancouver Charter bars the city from investing in the cryptocurrency. The recommendation would unwind a 2024 initiative led by Mayor Ken Sim.

In a report filed this week, staff said Bitcoin isn’t an eligible investment under the Vancouver Charter, the provincial law that governs city operations. Their review concluded that the city cannot hold Bitcoin and recommended ending the work.

The analysis followed a motion introduced in November 2024 titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.” Sim proposed allocating a portion of municipal reserves to Bitcoin as a hedge against inflation and volatility and pledged to donate $10,000 worth of Bitcoin to the city. Council approved the motion in December 2024, directing staff to assess feasibility and report back by the first quarter of 2025.

Beyond the legal constraint, staff pointed to the need to reprioritize resources and coordinate with other city initiatives. The recommendation asks council to rescind the bitcoin-friendly motion and close the feasibility review.

The Ministry of Municipal Affairs of British Columbia has stated that local governments are not permitted to hold financial reserves in cryptocurrencies, citing exposure to “undue risk.” Those limits apply to Vancouver’s reserves.

Bitcoin’s price swings since late 2024 framed the discussion. The token climbed to an all-time high above $126,000 before falling by roughly half to around $63,000 over four months. As of this writing, it was trading near $70,166.

Sim has argued that Bitcoin could protect purchasing power and has called it “the greatest invention in human history.” The staff report did not assess Bitcoin’s long-term outlook, focusing instead on legal authority and internal priorities.

Council is expected to consider the recommendation at an upcoming meeting. If adopted, the decision would halt further work on a municipal Bitcoin reserve and keep the city’s investment practices aligned with the Vancouver Charter.