Vancouver's "Bitcoin City" plan faces setbacks: officials suggest abandoning municipal BTC holdings plan

On March 6, news reports indicated that Vancouver, Canada, faced significant resistance to its plan to incorporate Bitcoin into the city’s financial system. According to an official report submitted to the Vancouver City Council on March 10, city officials advised councilors not to proceed with the “Bitcoin-friendly City” motion previously proposed by Mayor Ken Sim, which aimed to explore integrating Bitcoin into municipal finance.

The initial plan centered on two main areas: first, allowing residents to pay some municipal services with Bitcoin; second, investigating whether part of the city’s financial reserves could be allocated to digital assets. Ken Sim first proposed this idea in December 2024, believing that amid rising inflation and increasing global economic uncertainty, Bitcoin could serve as a potential tool to protect public funds’ purchasing power and enhance Vancouver’s influence in global blockchain innovation.

However, city officials raised several concerns in the report. The first was legal restrictions. Currently, provincial laws in British Columbia do not permit local governments to hold or trade cryptocurrencies as part of their financial management strategies, meaning Vancouver might face institutional barriers even if it wanted to establish Bitcoin reserves.

The second concern involved financial risks. The report pointed out that Bitcoin’s high volatility could introduce additional uncertainty to taxpayers’ funds if included in public reserves. Some policy advisors argued that public sector asset allocation should prioritize stability rather than bear the risks associated with highly volatile digital assets.

Meanwhile, supporters argued that Bitcoin has a certain store-of-value property in a long-term inflation environment. Some crypto industry figures noted that as more institutions and companies explore Bitcoin reserve strategies, local governments that completely avoid this trend might miss opportunities for technological innovation and digital financial development.

Currently, the staff report has been submitted to the city council for review. Councilors will decide whether to officially terminate the proposal or continue further research amid the risk debates. If the council adopts the staff’s recommendation, Vancouver’s plans to explore Bitcoin as a municipal reserve or payment tool may be temporarily shelved.