Vancouver Mayor’s Bitcoin Investment Plan Blocked by Law

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

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

Municipal law in Canada strictly limits city investments. Section 201 of the Vancouver Charter allows funds to be invested only in government securities, municipal debt, bank-guaranteed instruments, credit union deposits, and select pooled investment vehicles. The Municipal Finance Authority Act reinforces these rules, restricting municipal pools to conservative assets such as government bonds, municipal securities, bank deposits, and highly rated commercial paper, explicitly excluding stocks, commodities, and cryptocurrencies.

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