Vancouver Mayor Ken Sim plans to invest city reserves in Bitcoin A staff report says this is not allowed under the Vancouver Charter and B.C.’s Municipal Finance Authority Act.
A briefing note released ahead of a March council meeting recommended ending a motion to make Vancouver a “Bitcoin Friendly City” in 2024 after staff determined the plan violated municipal investment rules embedded in the city’s chargers. Staff wrote that they “conclusively determined that Bitcoin is not a permitted investment asset in the city under the Vancouver Charter.”
This conclusion reflects the highly restrictive framework that governs how Canadian municipalities invest public funds. Section 201 of the Vancouver Charter allows the city to invest idle funds in only a few instruments, such as federal or provincial government securities, government-guaranteed bonds, municipal debt, bank-guaranteed investments, credit union deposits and certain collective investment vehicles.
British Columbia’s Municipal Finance Authority Act strengthens this restriction.
The municipal investment pool is limited to conservative assets such as government bonds, municipal securities, bank deposits, and high-rated commercial paper.
The law defines qualifying securities as bonds, letters of credit, certificates of deposit and promissory notes, reflecting a framework established around fixed income and cash equivalents. Stocks, commodities and cryptocurrencies are not included.
A narrower question remains unresolved: whether Vancouver can still pursue the softer branding goals included in the bill by accepting Bitcoin as a tax or fee, as long as the cryptocurrency is immediately convertible into Canadian dollars.
While the charter dictates how city funds are invested, it does not necessarily dictate how payments are handled.
