Vancouver Mayor’s Bitcoin Investment Proposal Blocked by Law
- Vancouver Mayor Ken Sim’s plan to invest city reserves in bitcoin is prohibited under the Vancouver Charter.
- A staff report states that bitcoin is not an allowable investment asset for the city.
- The Vancouver Charter restricts municipal investments to a narrow set of instruments, including government securities and bank deposits.
- British Columbia’s Municipal Finance Authority Act further enforces these restrictions on municipal investment pools.
- The proposal aimed to position Vancouver as a “bitcoin-friendly city” but has been recommended for closure ahead of a council meeting.
The decision reflects strict regulations governing how Canadian municipalities can manage public funds, with cryptocurrencies excluded from eligible investments. A potential avenue remains for accepting bitcoin for taxes or fees, contingent upon immediate conversion to Canadian dollars.
As a result, the city’s initiative to invest in bitcoin at current prices around $70,614.48 cannot proceed due to legal constraints on municipal investments.(Source)
