Vancouver Rejects Mayor Sim’s Bitcoin Reserve Plan: Municipal Rules Halt Crypto Ambitions

Vancouver’s groundbreaking proposal to establish a “Bitcoin strategic reserve,” championed by Mayor Ken Sim, has hit a decisive roadblock. Following a comprehensive evaluation, city staff have concluded that Bitcoin does not fall within the legal asset classes permissible for municipal investment, recommending that the City Council withdraw the ambitious motion.

Mayor Ken Sim initially unveiled the motion, titled “Preserving Urban Purchasing Power Through Diversified Financial Reserves: Towards a Bitcoin-Friendly City,” in November 2024. His vision sought to allocate a portion of the city’s financial reserves into Bitcoin. The primary objectives were to fortify Vancouver’s financial stability and purchasing power against the pressures of traditional currency volatility, depreciation, and inflation.

The motion gained initial traction, with the Vancouver City Council voting to approve it in December 2024. This approval mandated city staff to assess the feasibility of creating such a Bitcoin reserve and to present a detailed research report by the first quarter of 2025. However, the much-anticipated findings of this evaluation were only made public this week, delivering an unfavorable verdict.

In their official report, city staff unequivocally stated: “According to the Vancouver Charter, Bitcoin is not listed as a legal asset type that the city government can invest in, and therefore recommends terminating related research and follow-up work.” This legal interpretation effectively renders the proposal untenable under current regulations.

Beyond the fundamental legal impediments, city staff also cited practical considerations for the recommendation to withdraw the motion. These included the necessity to reallocate internal human resources and the imperative to align with other pressing municipal priority projects, suggesting that the Bitcoin initiative would divert crucial resources from established strategic goals.

This outcome aligns with earlier warnings from provincial authorities. During the initial policy discussions, the British Columbia Ministry of Municipal Affairs had already issued a clear directive, stating that local governments, including Vancouver, are legally prohibited from incorporating cryptocurrencies into their financial reserves. The rationale behind this prohibition stemmed from concerns regarding “unnecessary risks” associated with such volatile assets.

Indeed, the authorities’ apprehension has proven well-founded. Since late 2024, Bitcoin’s market performance has been nothing short of a rollercoaster. After soaring to an unprecedented all-time high of $126,000, its value plummeted by 50% within just four months, briefly touching levels around $63,000. This dramatic fluctuation underscores the very volatility that provincial regulators sought to mitigate, reinforcing the city staff’s cautious stance.