Vancouver city staff have determined Bitcoin cannot be treated as an allowable municipal investment and have recommended dropping a council proposal to create a city Bitcoin reserve.
The finding, led by Colin Knight, general manager of the Finance and Supply Chain Management Department, states staff ‘conclusively determined’ that Bitcoin is not an allowable investment under the Vancouver Charter, according to a motions update issued Monday. Staff recommended merging the Bitcoin motion with related initiatives to reprioritize resources. A final decision awaits a council vote scheduled for Tuesday.
The reserve proposal was introduced in late 2024 by Mayor Ken Sim in a motion aimed at diversifying the city’s financial reserves and positioning Vancouver as more Bitcoin-friendly. The council initially approved the motion 6–2, but the staff assessment raises the likelihood the proposal will not proceed in its current form.
Proponents argued Bitcoin could serve as an inflation hedge because of its capped supply of 21 million coins and its frequent comparison to ‘digital gold.’ That case has weakened amid a prolonged market downturn: Bitcoin fell roughly 50% from an October 2025 peak above $126,000, returning to late‑2024 price levels and briefly touching lows near $60,000.
Analysts remain divided on whether Bitcoin behaves like a reliable inflation hedge. Some economists and market observers are skeptical, while others remain relatively bullish. Macro strategist Lyn Alden recently told the New Era Finance podcast she would bet on Bitcoin over gold over the next two to three years.
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