Vancouver Staff Urge Council to Close Bitcoin Reserve Motion After Charter Review

Vancouver city staff want the council to drop a 2024 motion that asked the city to explore holding Bitcoin in its financial reserves and accepting Bitcoin for municipal payments.

In a March report, it was mentioned that Bitcoin does not qualify as an eligible investment under the Vancouver Charter. Council will consider the recommendation on March 10 as part of a wider review of outstanding motions.

Staff Say Bitcoin Cannot Be Held in City Reserves

The city’s motion review report recommends that the council approve a reallocation of staff time and resources across dozens of pending motions. Within that package, staff recommend closing the Bitcoin motion after concluding it cannot be implemented under existing municipal investment rules.

Staff wrote they have “conclusively determined” that Bitcoin is not an allowable investment asset for Vancouver. They recommend ending the work tied to the motion.

The Motion Sought a Bitcoin Reserve and Bitcoin Payments

Mayor Ken Sim introduced the motion in November 2024 under the title “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City.”

Council approved the motion in December 2024 and told staff to assess feasibility, risks, and potential benefits. It asked for a report by the end of the first quarter of 2025. The direction included whether Vancouver could accept taxes and fees in Bitcoin. It also included whether the city could allocate part of its reserves to Bitcoin as a hedge.

Vancouver Charter Restricts Reserves to Eligible Cash and Fixed-Income Assets

The staff recommendation centres on the city’s governing statute, which sets boundaries on what kinds of assets Vancouver can hold when investing idle public funds.

The Vancouver Charter framework is built around fixed-income and cash-equivalent instruments, including government and municipal securities, bank-backed instruments, and certain deposits. Those constraints are typical for municipal reserve management, where mandates prioritise capital preservation, liquidity, and clear legal authority over return-seeking strategies.

Provincial Rules Back Staff View that Bitcoin Reserves Are Not Allowed

The staff’s conclusion lines up with the province’s approach to municipal finance. British Columbia has long restricted local governments from taking on high-volatility exposure in reserve funds.

During the 2024 debate, the province’s municipal affairs ministry said local governments cannot hold reserves in crypto. It cited concerns about exposing public funds to “undue risk.”

Vancouver’s proposal was framed as reserve diversification, not a pilot program using incidental funds. Reserve policy sits in the most restrictive part of the municipal finance framework.

Staff Recommend Closing the Bitcoin Motion as Part of Reprioritisation

The city report is not limited to the Bitcoin motion. It reviews outstanding council motions passed between 2018 and 2025 and recommends a set of adjustments to better align staff work with 2026 priorities.

In the case of the Bitcoin motion, staff cite both legal ineligibility and the need to reprioritise resources and coordinate with other initiatives. If the council adopts the report’s recommendations, the Bitcoin reserve work would formally end as an active staff item, closing out a proposal that had remained open on the council motion tracker.