Legal limits under the Vancouver Charter stop the city from holding Bitcoin reserves, ending a proposal to diversify funds into crypto.
Vancouver’s plan to become a Bitcoin-friendly city is losing momentum after a legal review by municipal staff. Officials say provincial rules restrict how the city can manage its financial reserves. A recent report now advises the city council to cancel the proposal tied to Bitcoin holdings. Debate around the idea had drawn attention from both crypto supporters and critics worried about financial risk.
City Report Says Vancouver Cannot Invest Public Funds in Bitcoin
City staff recently submitted a report to the Vancouver City Council recommending that the motion be withdrawn. Mayor Ken Sim introduced the proposal in November 2024.
The motion carried the title “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves—Becoming a Bitcoin-Friendly City.” It aimed to examine whether Vancouver could allocate part of its reserves to Bitcoin.
However, staff concluded that current rules prevent such an action. According to the report, the Vancouver Charter does not allow the city to invest in Bitcoin. The charter sets the legal framework for how Vancouver manages public funds and financial reserves.
As a result, the staff recommended ending further work on the proposal. The report also noted that city departments must focus on other priorities. Limited staff capacity and coordination with existing municipal programs were cited as additional reasons.
Legal Concerns Derail Vancouver’s Plan for a City BTC Reserve
Earlier, the Vancouver City Council approved a motion in December 2024 directing staff to study the feasibility of a Bitcoin reserve. Council members had asked for findings by the first quarter of 2025. Still, no public update appeared until the report released this week.
Canada’s CBC News previously reported that the Ministry of Municipal Affairs of British Columbia opposed the idea. Officials stated that municipalities cannot hold financial reserves in cryptocurrencies due to concerns over excessive risk.
Meanwhile, market conditions have shifted sharply since the proposal first emerged. Bitcoin climbed above $126,000 before falling roughly 50% over the next four months.
Latest market data places Bitcoin near $70,166, keeping volatility at the center of discussions about public-sector exposure to digital assets.
