Vancouver Staff Say Bitcoin Cannot Be Held in City Reserves

Vancouver, Canada, city staff said Bitcoin cannot be held in municipal reserves and recommended that the city council drop a proposal to create a Bitcoin reserve.

City 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.

Staff recommended merging the motion with other related initiatives to reprioritize resources, with a final decision pending a council vote at a meeting slated for Tuesday.

The proposal to create a Vancouver Bitcoin reserve was originally introduced in late 2024 by Mayor Ken Sim as part of a motion titled “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves — Becoming a Bitcoin-Friendly City.”

The council passed the motion with six votes in favor and two opposed. Still, the latest developments may deny the proposal.

Bitcoin’s inflation hedge argument fades amid bear market

Introducing the proposal in 2024, Mayor Sim said the motion was partly aimed at helping the city hedge against inflation using Bitcoin, which has often been described as “digital gold” because of its fixed supply capped at 21 million coins.

“As an open, decentralized, and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency debasement,” the motion read.

Related: Bitcoin is forming a bottom as the 4-year cycle ends: VanEck CEO

The argument that Bitcoin acts as an inflation hedge has weakened recently as the cryptocurrency’s price declined sharply. Bitcoin has fallen about 50% from its October 2025 peak of above $126,000, returning to late-2024 levels and briefly touching lows near $60,000.

Despite skepticism from some analysts who argue Bitcoin does not behave like digital gold, macroeconomists such as Lyn Alden remain bullish on the digital asset relative to gold in the near term.

“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 on Wednesday.

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