Vancouver city staff has advised council to rescind a motion aimed at making the city “bitcoin-friendly,” following a legal review.

The recommendation was laid out in a report submitted to Vancouver City Council ahead of its March 10 meeting.

Legal review and recommendation

The motion, titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City,” was presented in November 2024.

Staff said they “conclusively determined” that under the Vancouver Charter, bitcoin is not an allowable investment asset for the city.

City staff also cited the need to reprioritize resources and coordinate with other initiatives as reasons to end the work.

The 2024 proposal

Mayor Ken Sim’s motion sought to diversify Vancouver’s financial reserves by allocating a portion of municipal funds into bitcoin as a hedge against inflation and volatility.

Sim had previously called bitcoin “the greatest invention in human history” and pledged to donate $10,000 worth of bitcoin to the city.

Council timeline and provincial stance

In December 2024, Vancouver City Council approved exploring a bitcoin reserve and asked staff to report back by the first quarter of 2025.

No public report appeared until earlier this week.

CBC previously reported that British Columbia’s Ministry of Municipal Affairs said local governments are not permitted to hold reserves in crypto, citing concerns about exposure to “undue risk.”

Bitcoin price context

The report comes after a volatile stretch for bitcoin, which the article said hit an all-time high above $126,000 before falling about 50% to around $63,000 over four months.