Vancouver mayor’s Bitcoin investment initiative blocked under municipal and provincial rules.

Vancouver Mayor’s Bitcoin Investment Proposal Blocked by Law

Vancouver Mayor Ken Sim’s plan to invest city reserves in Bitcoin (BTC $67,722.62) has been ruled impermissible under the Vancouver Charter and British Columbia’s Municipal Finance Authority Act, according to a staff report.

Released ahead of a March council meeting, the briefing recommends closing a 2024 motion aimed at making Vancouver a “bitcoin-friendly city,” after staff determined the plan violates municipal investment rules. Officials said they “conclusively determined that under the Vancouver Charter, bitcoin is not an allowable investment asset for the City.”

Municipal investment rules in Canada are highly restrictive. Section 201 of the Vancouver Charter limits idle city funds to government securities, municipal debt, bank-guaranteed instruments, credit union deposits, and certain pooled investment vehicles. The Municipal Finance Authority Act reinforces these limits, restricting municipal pools to government bonds, municipal securities, bank deposits, and highly rated commercial paper, explicitly excluding stocks, commodities, and cryptocurrencies.

A narrower question remains whether Vancouver could still pursue its “bitcoin-friendly” branding by accepting bitcoin for taxes or fees, provided it is immediately converted to Canadian dollars. While the charter governs city fund investments, it does not necessarily regulate payment processing.

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