Vancouver’s ambition to position itself as a Bitcoin-friendly city is facing a hurdle after city officials advised council to cancel the initiative.
The proposal, championed by Mayor Ken Sim, aimed to explore whether the city could hold Bitcoin in its financial reserves and accept cryptocurrency payments.
However, a legal review by city staff concluded that municipal rules do not allow Vancouver to invest public funds in Bitcoin.
The recommendation comes during a review of council initiatives, placing the future of the crypto-focused plan in doubt and highlighting regulatory barriers local governments face when dealing with digital assets.
Legal limits on Bitcoin reserves
City officials reviewing the proposal concluded that Bitcoin does not meet the definition of an approved investment under the Vancouver Charter.
This municipal law governs how the city manages its finances and determines which assets can be included in public investment portfolios.
Because Bitcoin is not listed among permitted assets, staff advised the city council to discontinue work on the proposal.
Their report says municipal resources should instead be directed towards higher priority projects.
The recommendation emerged during an assessment of council initiatives spanning several years. Officials examined 181 council plans introduced between 2018 and 2025.
According to the review, 103 of those initiatives have already been completed.
The remaining 78 proposals are now being evaluated to determine whether they should move forward or be discontinued.
The Bitcoin reserve proposal is among those recommended for cancellation.
Mayor’s Bitcoin-friendly city proposal
The initiative began in November 2024 when Vancouver mayor Ken Sim introduced a proposal titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.”
The proposal argued that holding Bitcoin could help protect the city’s purchasing power over time.
It also asked city staff to examine whether Vancouver could begin accepting payments in Bitcoin for municipal services.
Another part of the plan explored converting a small portion of the city’s financial reserves into Bitcoin as part of a diversification strategy.
Sim also pledged to donate $10,000 worth of Bitcoin if the proposal was approved.
Vancouver’s city council supported the idea in December 2024 and instructed city staff to conduct further research.
Officials were expected to provide an update on the feasibility of the plan by early 2025.
However, the findings of that review were not made public until earlier this week.
Bitcoin volatility and policy concerns
When the proposal received council approval in December 2024, Bitcoin had just crossed the $100,000 mark for the first time.
The surge fuelled interest among governments exploring digital assets as alternative reserves.
Since then, market conditions have changed.
Bitcoin is currently trading at around $70,512, illustrating the price swings that characterise the cryptocurrency market.
City staff noted that under the Vancouver Charter, Bitcoin cannot be classified as an allowable asset for municipal investments.
This legal restriction became the central reason behind the recommendation to end the project.
If the council accepts the staff recommendation, Vancouver’s plan to study Bitcoin payments and reserve diversification will be formally closed.
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