Vancouver Mayor Ken Sim’s Plan to Invest City Reserves in Bitcoin Not permitted under the Vancouver Charter and the Municipal Finance Authority Act of British Columbia, A staff report says.
A briefing released before a March council meeting recommended shutting down a 2024 initiative to make Vancouver a “bitcoin-friendly city,” after staff determined the plan violated municipal investment rules embedded in the city’s Chargers. Staff wrote that they “optionally determined that, under the Vancouver Charter, bitcoin is not a permissible investment asset for the city.”
This result reflects the highly restrictive framework that governs how Canadian municipalities can invest public funds. Section 201 of Vancouver Charter Allows the city to invest idle funds only in a narrow set of instruments, such as federal or provincial government securities, government-guaranteed bonds, municipal debt, bank-guaranteed investments, credit union deposits and certain investment vehicles.
British Columbia Municipal Finance Authority Act Strengthens the bond.
Municipal investment pools 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. Excludes stocks, commodities and cryptocurrencies.
One small question remains: Can Vancouver still achieve the soft branding goal of the movement by accepting bitcoin for taxes or fees, provided the cryptocurrency is immediately converted to Canadian dollars?
Although the charter regulates how city funds are invested, it does not necessarily regulate how payments are processed.