Vancouver city officials have said that bitcoin cannot be held in municipal reserves and have recommended that city council reject a proposal to create a bitcoin reserve.
City staff, led by Colin Knight, general manager of finance and supply chain management, “has determined that Bitcoin (BTC) is not a ‘permitted investment’ for the city under the Vancouver Charter,” according to a March 2 update.
Staff recommended combining the proposal with other initiatives related to reallocating resources with a final decision pending a council vote at the March 10 meeting.
A proposal to establish a Bitcoin reserve in Vancouver by the end of 2024 was made by Mayor Ken Sim as part of a movement titled “Maintaining the city’s purchasing power by diversifying financial resources – becoming a Bitcoin-friendly city”.
The Council accepted this proposal with six votes in favor and two votes against. However, recent developments may put a stop to this proposal altogether.
The hedge argument for Bitcoin inflation is fading in a bear market
Set for 2024, Mayor Sim said the move is partly aimed at helping the city fight inflation by using Bitcoin, often described as “digital gold” due to its perpetual supply of 21 million coins.
“As an open, decentralized and secure digital asset, Bitcoin is recognized by many financial experts and analysts as a potential hedge against currency inflation and devaluation,” the filing said.
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The argument that bitcoin is acting as an inflation hedge has weakened recently as the price of the cryptocurrency has plummeted. Bitcoin has fallen nearly 50% from its October 2025 peak above $126,000, returning to late 2024 levels and briefly touching lows near $60,000.
Despite the skepticism of some analysts who say that Bitcoin will not behave like digital gold, macroeconomists such as Lynn Alden remain indifferent to digital assets over gold in the near term.
“If I had to bet bitcoin versus gold over the next two to three years, I’d bet bitcoin,” Alden said on the New Era Finance podcast on Wednesday.
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