TLDR
- Vancouver Charter bars Bitcoin as municipal reserve asset
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Staff recommend closing 2024 Bitcoin-friendly motion
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BC ministry says crypto exposes local funds to undue risk
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Council had approved feasibility study in December 2024
Vancouver city staff have advised council to close a motion exploring a Bitcoin reserve. The recommendation follows a legal review under the Vancouver Charter.
In a report to the council, staff said they had “conclusively determined” that Bitcoin is not an allowable investment asset. They stated that municipal law does not permit holding cryptocurrency in city reserves.
The Vancouver Charter governs how the city operates and invests public funds. Staff said its provisions limit the types of assets that can be held in municipal treasuries. The report also cited the need to reprioritize staff resources. Officials recommended ending the process as part of broader coordination efforts across departments.
2024 Motion Sought Bitcoin-Friendly Status
The proposal originated in November 2024 under Mayor Ken Sim. The motion was titled
“Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves—Becoming A Bitcoin Friendly City.”
The motion directed staff to study whether the city could accept taxes and fees in cryptocurrency. It also asked officials to assess converting part of the city’s financial reserves into Bitcoin. In December 2024, the city council approved the motion for review. Staff were asked to report back by the first quarter of 2025.
Mayor Sim had described Bitcoin as the top-performing asset over the past 16 years. He also pledged to donate $10,000 worth of Bitcoin to the city. However, no public feasibility report was released until the recent staff update. The latest report now recommends formally closing the motion.
Provincial Rules Limit Municipal Investments
The British Columbia Ministry of Municipal Affairs had previously addressed the issue. The ministry said municipalities cannot hold financial reserves in crypto under provincial rules.
In a prior statement, the ministry said the intent of the legislation “is that local government funds are not exposed to undue risk.” The ministry oversees how municipalities manage public funds. Staff cited these provincial constraints in their recommendation. They said the Vancouver Charter restricts the city’s ability to pursue crypto-based reserve strategies.
Council member Pete Fry, who opposed the motion, told local media he believed the proposal had already been shelved. He said, “I already thought it was dead in the water.” Fry added that mentioning the motion in the report provided closure. He also questioned whether further action was necessary.
Broader Context Around Crypto Policy
The recommendation comes as digital asset policy continues to evolve across Canada. In recent years, federal authorities have moved toward clearer rules for certain crypto products. Municipal governments, however, remain bound by provincial legislation. Investment frameworks are designed to prioritize capital preservation and liquidity.
City staff said that, under current law, Bitcoin cannot be categorized as an allowable reserve asset. As a result, they advised council to conclude the work.
The council is expected to review the recommendation at an upcoming meeting. If accepted, the motion to explore a municipal Bitcoin reserve will be formally closed.
