City staff in Vancouver have formally recommended against a proposal to establish a municipal Bitcoin reserve. The staff report concluded that holding Bitcoin is not an allowable investment under the city’s charter. The final decision now rests with the city council, which is set to vote on the recommendation.
Vancouver city staff have determined that Bitcoin cannot be held in municipal reserves. They recommended the city council drop a proposal to create a Bitcoin reserve.
Staff, led by Colin Knight, general manager of the Finance and Supply Chain Management Department, conclusively determined the cryptocurrency is not an allowable investment under the Vancouver Charter. This was according to a motions update report.
The proposal was originally introduced in late 2024 by Mayor Ken Sim. It was part of a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves — Becoming a Bitcoin-Friendly City.”
The council initially passed the motion with six votes in favor. The latest staff recommendation may now deny the proposal.
Introducing the proposal, Mayor Sim said it aimed to help the city hedge against inflation. The motion read that Bitcoin has been recognized as a potential hedge.
The argument that Bitcoin acts as an inflation hedge has weakened recently. The cryptocurrency’s price has fallen about 50% from its October 2025 peak above $126,000.
Despite this price decline, some macroeconomists remain bullish on the digital asset relative to gold. “If I had to bet Bitcoin versus gold over the next two to three years, I would bet Bitcoin,” Lyn Alden said on a podcast.
