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Vancouver authorities have abandoned the proposal to establish a Bitcoin reserve., 2026/03/06 12:12:07
The administration of the Canadian city of Vancouver has advised the city council to reject the proposal for creating conditions to utilize Bitcoin as a reserve asset.
The municipal authorities concluded that the leading cryptocurrency does not meet the criteria required for investment instruments in which the city can allocate its financial reserves.
The initiative for potentially establishing a Bitcoin reserve was put forward by Vancouver’s mayor, Ken Sim, at the end of 2024. He suggested that a portion of municipal funds could be invested in Bitcoin to diversify assets and safeguard the purchasing power of the budget against inflation and the volatility of traditional markets.
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In December 2024, the city council endorsed the mayor’s proposal and tasked administrative staff with analyzing the feasibility of creating a municipal reserve in Bitcoin. However, following the assessment, officials reached a contrary conclusion.
“The administrative staff reached a clear conclusion that, according to the Vancouver Charter, Bitcoin is not an acceptable investment asset for the city, and therefore recommend discontinuing this effort,” the explanation states.
The British Columbia Ministry of Municipal Affairs had previously indicated that local authorities are not permitted to hold financial reserves in cryptocurrencies. The agency clarified this stance due to concerns regarding the heightened risks associated with the volatility of digital assets.
Earlier, Ray Dalio, founder of the hedge fund Bridgewater Associates, stated in the All-In podcast that Bitcoin cannot be regarded as a long-term savings vehicle or a “safe haven,” and outlined reasons why investors should approach the purchase of the leading cryptocurrency with caution.
