Officials in Vancouver, Canada are moving to close a proposal that would have explored adding Bitcoin to the city’s financial reserves, after a legal review determined that current laws prohibit municipalities from holding cryptocy as a reserve asset.
The proposal was part of a broader initiative introduced by Vancouver Mayor Ken Sim in 2024 aimed at making the city more “Bitcoin-friendly” and examining whether digital assets could help diversify municipal financial reserves.
City staff concluded that Bitcoin is not an allowable investment under the Vancouver Charter, the provincial law that governs how the city manages public finances. Because the charter restricts municipal investments to specific low-risk instruments such as government bonds and bank deposits, officials said the city has no legal authority to hold cryptocy reserves.
The legal interpretation effectively stops the plan before any pilot program or implementation phase could begin. Staff have recommended that the city council formally close the motion and discontinue work on the proposal.
Provincial authorities in British Columbia have also confirmed that municipalities are not permitted to hold crypto reserves under current regulations, citing concerns about exposing taxpayer funds to volatile assets.
Mayor Sim’s original proposal, introduced in late 2024, asked city staff to explore several potential crypto initiatives, including:
Converting a portion of Vancouver’s financial reserves into Bitcoin
Allowing residents to pay municipal taxes or fees with cryptocy
Using Bitcoin as a potential hedge against inflation and cy debasement
Supporters argued that Bitcoin’s limited supply and global liquidity could help municipalities preserve purchasing power over time. However, critics raised concerns about price volatility, regulatory uncertainty, and the risks of placing public funds in digital assets.
With the legal review now complete, Vancouver’s Bitcoin reserve initiative is expected to be formally closed unless provincial laws change. Any future attempt to hold Bitcoin in municipal reserves would require amendments to the Vancouver Charter or new provincial legislation expanding the list of permitted investments.
While the proposal will not move forward for now, the debate reflects a growing global conversation about whether governments should hold Bitcoin as part of their financial reserves. Several jurisdictions around the world have begun exploring similar ideas as digital assets gain broader recognition in financial markets.
SWIFT has launched a new blockchain-based ledger pilot with 17 major banks to test how tokenized deposits can move across…
Sony Bank, the banking arm of Sony Financial Group, has received conditional approval from the Office of the Comptroller…
PayPal has expanded its stablecoin strategy by launching PayPal USD (PYUSD) natively on the Polygon blockchain, giving businesses direct access…
BONK, one of Solana's most recognizable memecoins, is facing a major governance crisis after an…
World, the blockchain ecosystem co-founded by Sam Altman, is shifting its prediction market infrastructure from Solana to the…
BNB Chain has revealed plans to build a brand-new Layer 1 blockchain specifically designed for the next generation…