Vancouver City Staff Drops Bitcoin Reserve Plan, Says BTC Not Allowed
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A proposal to make Vancouver a Bitcoin-friendly city is now facing a setback after city officials recommended cancelling the plan. Staff says local law does not allow the city to invest public funds in Bitcoin.
This puts an end to Mayor Ken Sim’s proposal to add Bitcoin to city reserves and accept crypto payments. He had even pledged to donate $10,000 in Bitcoin if the plan was approved.
Bitcoin Not an ‘Allowable Asset’ Under City Law
After reviewing the proposal, officials working for the City of Vancouver have advised the city council to withdraw the plan to add Bitcoin to the city’s financial reserves.
City staff said that Bitcoin does not qualify as an “Allowed Investment” under the Vancouver Charter. This law decides how the city manages its money and what types of assets it is allowed to invest in.
Since Bitcoin is not on the list of approved assets, the city staff recommended ending the work on this proposal. They also suggested that the city should focus its time and resources on other projects that are a higher priority.
The recommendation came during a review of council plans. Officials looked at 181 plans made between 2018 and 2025. 103 are already finished, while the remaining 78, including the Bitcoin plan, are now being checked to decide if they should continue or be stoppedHow the Bitcoin Reserve Plan Started?
The proposal “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City,” was introduced by Vancouver mayor Ken Sim in November 2024.
Sim said that Bitcoin could help protect the city’s purchasing power over time. The plan asked city staff to study whether Vancouver could accept payments in Bitcoin and whether a small portion of the city’s financial reserves could be converted into the cryptocurrency.The city council approved the plan in December 2024 and asked city staff to give an update by early 2025. However, no public report was shared until earlier this week.
Bitcoin’s Price Volatility Ends Vancouver’s Crypto Plan
When Ken Sim made this proposal in December 2024, Bitcoin had just crossed $100,000 for the first time.
Now the BTC price has fallen to around $71,000. City staff in Vancouver say Bitcoin does not qualify as an “allowed investment.”
With staff now recommending that the plan be closed, Vancouver’s plan to become a Bitcoin-friendly city may soon end.
FAQs
Why did Vancouver cancel its Bitcoin reserve proposal?
City staff advised canceling the plan because local law does not classify Bitcoin as an allowable investment for public funds.Can the City of Vancouver legally invest in Bitcoin?
No. Under the Vancouver Charter, the city can only invest in approved assets, and Bitcoin is not currently on that list.Could Vancouver adopt Bitcoin in the future?
It’s possible if laws change or Bitcoin becomes an approved asset, allowing the city to legally invest or accept crypto payments.
source: https://www.tradingview.com/news/coinpedia:a2221fd9a094b:0-vancouver-city-staff-drops-bitcoin-reserve-plan-says-btc-not-allowed/
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