City staff in Vancouver have recommended that the city council abandon a proposal to establish a Bitcoin reserve, citing that Bitcoin (BTC) is not an “allowable investment” under the Vancouver Charter. The report, dated Monday and led by Colin Knight, the general manager of the Finance and Supply Chain Management Department, suggests merging the motion with other initiatives to better allocate resources. A final decision is expected during a council meeting scheduled for Tuesday.
The proposal was initially introduced in late 2024 by Mayor Ken Sim as part of a broader strategy to enhance the city’s purchasing power through financial diversification. It garnered support from six council members, while two opposed it. However, the recent analysis may jeopardize the initiative.
Despite Bitcoin's reputation as a potential inflation hedge, its value has significantly declined, dropping approximately 50% from its peak of over $126,000 in October 2025 to around $60,000. This downturn has led to increased skepticism regarding its status as “digital gold,” although some financial analysts remain optimistic about Bitcoin's future compared to traditional assets like gold.