Vancouver Mayor Ken Sim’s plan to invest the city’s reserves in bitcoin is not permitted under the Vancouver Charter and the British Columbia Municipal Finance Authority Act, according to a staff report.
The report released ahead of a council meeting in March recommends shutting down a 2024 motion to make Vancouver a “bitcoin-friendly city,” after staff determined the plan violates municipal investment rules included in the city’s charger. Staff wrote that they “conclusively determined that, under the Vancouver Charter, bitcoin is not a permitted investment asset for the city.”
The conclusion reflects the highly restrictive framework governing how Canadian municipalities can invest public funds. Section 201 of the Vancouver Charter allows the city to invest idle funds in only a limited set of instruments, such as federal or provincial government securities, government-guaranteed bonds, municipal debt, bank-guaranteed investments, credit union deposits and certain pooled investment vehicles.
The British Columbia Municipal Finance Authority Act reinforces the restriction.
Municipal investment funds are limited to conservative assets such as government bonds, municipal securities, bank deposits and high-grade commercial paper.
The law defines eligible securities as bonds, debentures, certificates of deposit and promissory notes, reflecting a framework built around fixed income and cash equivalents. Stocks, commodities and cryptocurrencies are not included.
A more concrete question remains unresolved: whether Vancouver could still pursue the softer branding goal included in the motion by accepting bitcoin for taxes or fees, as long as the cryptocurrency is immediately converted to Canadian dollars.
While the statute regulates how city funds are invested, it does not necessarily govern how payments are processed.
