Vancouver staff have concluded that the Vancouver Charter does not allow Bitcoin to be held as a municipal reserve asset, and they recommended closing the motion to study a Bitcoin-friendly city.

Council support for researching feasibility was given in December 2024, with updates anticipated in early 2025, but the public findings were only released recently.

Experts say updating provincial laws could reopen the door to municipal crypto initiatives, but adoption remains largely stalled until that happens.

The move could influence other cities to consider similar ideas, though most proposals stall without changes to legislation, accounting rules, or custody systems.

Officials cited volatility, environmental concerns of blockchain, and regulatory limits as reasons municipalities cannot hold cryptocurrency in public funds.

Historically, crypto policy setbacks can trigger short-lived BTC price dips followed by recoveries, with on-chain metrics like hash rate and transaction volumes remaining robust.

Public reaction on social media showed disappointment from crypto advocates and a sense that regulatory evolution is needed for future municipal crypto adoption.

Opposition to the motion was limited to one council member, Pete Fry, who welcomed its closure status while noting other deprioritized items.

A legal review led to shelving Vancouver’s Bitcoin reserve proposal, highlighting regulatory hurdles for municipal finance and uncertainty for Bitcoin adoption.

The decision effectively ends Vancouver’s bid to become a Bitcoin-friendly city under current laws and staff assessments.

Mayor Sim defended the idea earlier, arguing for Bitcoin as part of a diversified municipal portfolio, but legal and treasury barriers persisted from the start.

The decision is part of a broader review of 181 council initiatives from 2018 to 2025, with most completed or under evaluation, including the Bitcoin reserve proposal.