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) is not allowed under the Vancouver Charter and British Columbia’s Municipal Finance Authority Act, according to a staff report.
The report, released 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 they “conclusively determined that under the Vancouver Charter, bitcoin is not an allowable investment asset for the City.”
Canadian municipal investment rules 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. Stocks, commodities, and cryptocurrencies are explicitly excluded.
One open question remains: whether Vancouver could still pursue the “bitcoin-friendly” branding goal by accepting bitcoin for taxes or fees, provided the cryptocurrency is immediately converted to Canadian dollars. While the charter regulates how city funds are invested, it does not necessarily govern how payments are processed.
