Vancouver Bitcoin Reserve Plan Meets City Staff Resistance

What to Know

Bitcoin is not an allowable investment under the Vancouver Charter, city staff concluded ahead of a Tuesday council vote
Mayor Ken Sim introduced the Bitcoin reserve proposal in late 2024 to help Vancouver hedge against inflation
The council originally approved the motion with six votes in favor and two opposed
Bitcoin has fallen roughly 50% from its October 2025 peak above $126,000, weakening the inflation-hedge argument

Vancouver's Bitcoin reserve ambitions face a serious roadblock after city staff concluded that holding the digital asset in municipal reserves violates the governing charter. Officials recommended the council abandon Mayor Ken Sim's proposal ahead of a Tuesday vote, casting doubt on a plan that initially secured majority support.

City Staff Rule Bitcoin an Unlawful Investment

Colin Knight, general manager of the Finance and Supply Chain Management Department, led a review that "conclusively determined" Bitcoin is not an "allowable investment" under the Vancouver Charter, according to a motions update report published on Monday. Staff urged the council to fold the initiative into other related efforts and redirect resources.

A final decision rests with the city council at a Tuesday meeting. If members follow the staff recommendation, the reserve plan would effectively be shelved despite clearing an earlier procedural vote.

Why Did Vancouver Propose a Bitcoin Reserve?

Mayor Ken Sim put forward the Vancouver Bitcoin reserve idea in late 2024 under a motion titled "Preserving the City's Purchasing Power Through Diversification of Financial Reserves — Becoming a Bitcoin-Friendly City." The council approved it with six votes in favor and two opposed, signaling early political appetite for crypto-backed treasury diversification.

Sim argued that Bitcoin's fixed supply, capped at 21 million coins, made it a viable hedge against inflation and currency debasement. Supporters have long described Bitcoin as "digital gold," pointing to its scarcity as a safeguard for purchasing power.

As an open, decentralized, and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency debasement.
— Vancouver City Council Motion, 2024

Bitcoin Price Decline Undercuts Inflation Hedge Thesis

The case for Bitcoin as a reliable store of value has weakened over recent months. The cryptocurrency has tumbled roughly 50% from its October 2025 peak above $126,000, sliding to late-2024 levels and briefly dipping near $60,000. The drawdown has given ammunition to skeptics who contend Bitcoin does not behave like traditional safe-haven assets.

Still, not all macro analysts share that bearish view. Macroeconomist Lyn Alden expressed continued confidence in the digital asset relative to gold over a medium-term horizon. "If I had to bet Bitcoin versus gold over the next two to three years, I would bet Bitcoin," Alden stated on the New Era Finance podcast on Wednesday.

What This Means Going Forward

Tuesday's council vote will determine whether Vancouver's Bitcoin reserve experiment survives or gets permanently sidelined. A vote to follow staff recommendations would mark a significant reversal for the city, which had positioned itself among the first major Canadian municipalities to embrace cryptocurrency at the treasury level.