Vancouver’s ambitious plan to establish a Bitcoin strategic reserve has hit a dead end. City staff released an assessment this week recommending the council withdraw the motion, stating that Bitcoin does not qualify as a legal investment asset under the Vancouver Charter.
Motion Once Approved by Council
The proposal, titled “Maintaining City Purchasing Power Through Diversified Financial Reserves: Towards a Bitcoin-Friendly City,” was introduced by Mayor Ken Sim in November 2024. It aimed to allocate a portion of the city’s financial reserves to Bitcoin to hedge against currency devaluation and inflation. The Vancouver City Council approved the motion in December 2024, directing staff to conduct a feasibility study and report back by the first quarter of 2025. The results were only made public this week.
Staff Report: No Legal Basis and Resource-Intensive
The staff report clearly stated: “Under the Vancouver Charter, Bitcoin is not listed as a legal asset class for city investment, and therefore we recommend terminating further research and follow-up work.” The report also highlighted that pursuing the initiative would require reallocating internal human resources, potentially impacting other municipal priority projects.
Earlier, the British Columbia Ministry of Municipal Affairs had already indicated that local governments are prohibited from including cryptocurrencies in fiscal reserves, citing “unnecessary risks.”
Bitcoin Volatility Reinforces Concerns
Staff concerns were not unfounded: since late 2024, Bitcoin’s price has been highly volatile—soaring to an all-time high of $126,000 before halving 50% within four months, dropping to around $63,000. Such extreme fluctuations run counter to the principle of stability and safety required for government reserves.
Vancouver’s Bitcoin reserve dream is now officially over, and other local governments considering similar moves may still face legal and risk-related obstacles.