Mayor Ken Sim’s dream of transforming Vancouver into a “Bitcoin-friendly city” appears to be coming to an unceremonious end. On March 5, the city staff released a definitive report recommending that the Vancouver City Council end its study exploring a potential strategic Bitcoin reserve, citing that the cryptocurrency is “not an allowable investment asset for the city.”
This is a big blow for the Mayor, who famously declared himself as “orange-pilled” and described bitcoin as “the greatest invention in human history” in a December 2024 episode of the Coin Stories podcast, hosted by Natalie Brunell.
Vancouver Closes Mayor’s Bitcoin Reserve Motion
In December 2024, when bitcoin was surging past the $100,000 mark, the council passed a motion under his recommendation directing staff to study the feasibility of converting a portion of Vancouver’s financial reserves into the apex crypto to hedge against inflation.
In the motion titled, “Preserving the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City,” Sim proposed integrating Bitcoin to preserve the city’s purchasing power and attract economic growth through Bitcoin mining. The motion also directed staff to assess accepting the Alpha crypto as a form of payment. He even promised that his family would donate $10,000 in BTC personally to the city if the motion passes.
The staff was to report back to the council in the first quarter of 2025, but no communications were known. However, a new report coming to the council next week reportedly says that bitcoin failed to qualify as an “allowable investment asset for the city” under the Vancouver Charter.
The charter, which has a strict list of recommended investment assets for public funds – aimed at protecting taxpayers from financial risk – is overseen by the British Columbia Ministry of Municipal Affairs. The ministry clarified that local governments are restricted to investing in low-risk, conservative asset categories, typically fixed-income or cash-like instruments.
Mayor’s Bitcoin Proposal Among 181 Motions Dropped by City Council
According to the report, the Bitcoin reserve proposal was one among 181 motions that councilors passed between November 2018 and December 2025. Of that total, 103 motions, or about 57%, have been completed, with the remaining divided into two groups: 51 motions that the staff considers a priority and 27 that it recommends closing.
The decision to bin Sim’s motion, which is in the latter group, comes as the documents ask the council for permission to free up staff resources or reduce spending to manage a dire fiscal outlook for Vancouver. With the city facing a reduced annual budget and a possible workforce reduction to 400 full-time employees, administrators argued that continuing work on a “legally impossible” motion was an inefficient use of resources.
Councillor Pete Fry, a vocal critic of the Mayor’s motion, noted that BTC’s recent volatility – which saw it retreat towards $60,000 – further underscored the risk of using municipal treasury for speculative investments. Bitcoin’s performance since October 2025 was a major source of backlash for Sim.
“As with all public sector organisations, the work demands on city staff tend to be additive, which is to say that over time, far more work is added to the city staff’s workload than is taken away or adjusted downward,” the report reads. “The pressure of increased work arises as social, economic, and cultural circumstances change, and as new issues and opportunities arise.”
The Vancouver City Council is expected to formally vote to close the strategic Bitcoin reserve motion on March 10.
Canada Allocates $10 Million from Annual Budget to Explore Regulated Payment Stablecoins
Meanwhile, the Canadian government also echoed Vancouver’s sentiment, signaling a clear preference for regulated, fiat-backed stablecoins over decentralized cryptocurrencies such as bitcoin. As part of its 2026 budget, Prime Minister Mike Carney’s administration has allocated $10 million over the next two years (2026-2027) to the Bank of Canada to administer a new national-level framework for payment stablecoins.
The move is part of the broader Stablecoin Act, introduced in the Budget Implementation Act, 2025, which aims to ensure that the Canadian dollar (CAD) remains the primary unit of account in domestic digital transactions. Issuers are required to maintain 1:1 asset reserves and meet strict consumer protection and data security standards. It recommends amending the Retail Payment Activities Act to allow payment service providers to use approved stablecoins for near-instant, 24/7 settlements.
At the time of writing, Bitcoin (BTC) is trading at $70,684 – down 2.62% in 24 hours.
