Vancouver city staff have recommended ending work on a motion to make the city “Bitcoin-friendly,” including exploring a Bitcoin reserve. This stems from a motion passed by Vancouver City Council in December 2024, introduced by Mayor Ken Sim.
The motion, titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City,” directed staff to analyze options like: Converting portions of the city’s financial reserves into Bitcoin as a hedge against inflation and fiat challenges.
Accepting Bitcoin for municipal taxes, fees, and other payments. The council approved it at the time with ABC party councillors in favor, marking an early pro-Bitcoin step for a major Canadian city.
However, as of early March 2026, city staff—following a legal review—have concluded that Bitcoin does not qualify as an allowable investment asset under the Vancouver Charter; the provincial law governing the city’s operations and investments and related rules like the British Columbia Municipal Finance Authority Act.
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In a report prepared for an upcoming council meeting scheduled around March 10, 2026, staff stated they have “conclusively determined” this restriction and recommended closing the motion. This is part of a broader effort to reprioritize staff resources, scale back or merge less feasible initiatives, and focus on 2026 priorities.
The recommendation effectively halts progress on holding Bitcoin in reserves, though other aspects like potential payment acceptance may face similar barriers. The final decision rests with council, but staff’s position signals strong opposition based on current law. This development contrasts with growing Bitcoin adoption trends elsewhere, but highlights regulatory hurdles for municipalities in Canada.
No major changes to provincial or city laws appear imminent to enable such holdings. The Vancouver Charter is the provincial legislation (British Columbia) that serves as the governing framework for the City of Vancouver, including strict rules on how the city can invest its funds, particularly idle or reserve funds.
These restrictions are designed to prioritize capital preservation, low risk, and protection of public money from volatility or “undue risk,” as emphasized by both city staff and the BC Ministry of Municipal Affairs. This is because the legislation limits investments to a narrow, conservative list of traditional, low-risk instruments.
Permitted categories typically include: Securities issued or guaranteed by the Government of Canada or the Province of British Columbia. Bonds or debentures issued by other municipalities or guaranteed by senior governments. Deposits or instruments guaranteed by chartered banks or credit unions.
Certain pooled investment vehicles or other fixed-income, government-backed options. Bitcoin is explicitly excluded because it is not listed among these permitted assets, lacks the characteristics of stability and government backing required, and is viewed as exposing public funds to excessive volatility and risk. The Charter does not provide flexibility for speculative or alternative assets like crypto.
This aligns with broader provincial guidance under related laws, such as the British Columbia Municipal Finance Authority Act, which reinforces conservative investment mandates for local governments to avoid undue risk. While the exact section most frequently referenced in reports is around investment powers (often tied to sections dealing with financial reserves and idle funds, such as Section 201 in some summaries, which authorizes investment of idle funds in specified instruments), the Charter as a whole does not enumerate cryptocurrencies or digital assets as eligible.
No amendments have been made to include them as of March 2026. In practice, these rules reflect a protective approach common to Canadian municipal finance: public reserves are for stability and liquidity; to cover emergencies or debt obligations not for high-risk and high-reward speculation.
Changing this would require provincial legislative amendments, which are not currently indicated.