Vancouver city staff have concluded that Bitcoin cannot be held in municipal reserves and recommended 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” that Bitcoin (BTC) is not an “allowable investment” under the Vancouver Charter, according to a motions update report dated Monday.
They recommended merging the motion with related initiatives to reprioritize resources. A final decision is pending a council vote scheduled for Tuesday.
The proposal to establish a Vancouver Bitcoin reserve was introduced in late 2024 by Mayor Ken Sim in a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves — Becoming a Bitcoin-Friendly City.” The council originally passed the motion with six votes in favor and two opposed, but the staff findings may prevent the proposal from moving forward.
Bitcoin’s inflation-hedge argument has weakened amid a bear market. When introducing the motion in 2024, Mayor Sim said the city could use Bitcoin to hedge against inflation, noting Bitcoin’s fixed supply capped at 21 million coins and its characterization by some as “digital gold.”
That argument lost momentum as Bitcoin’s price dropped sharply — roughly 50% from an October 2025 peak above $126,000, returning to late-2024 levels and briefly touching lows near $60,000.
Despite skepticism from some analysts who say Bitcoin does not behave like digital gold, macroeconomists such as Lyn Alden remain relatively bullish. “If I had to bet Bitcoin versus gold over the next two to three years, I would bet Bitcoin,” Alden said on the New Era Finance podcast.
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