The "Bitcoin-Friendly City" initiative promoted by the City of Vancouver, Canada, has been effectively halted due to legal restrictions. This decision comes about a year after Vancouver Mayor Ken Sim proposed incorporating virtual assets into the city's reserve assets.
A recent report submitted to City Council by Vancouver City Council recommended the closure of the proposal, stating, "After reviewing the Vancouver Charter and related financial regulations, Bitcoin is not an asset that a municipality can hold." Mayor Ken Sim has highlighted Bitcoin's high returns over the past several years and has suggested its adoption as a means of asset diversification. However, the current system appears to prioritize capital preservation and risk minimization for public funds.
In particular, regulations governing local governments in British Columbia limit the scope of investment assets they can hold, and it has been confirmed that highly volatile virtual assets are currently excluded from the system. This is interpreted as an example of local governments' financial management being designed with stability in mind, rather than profitability.
This case is being evaluated as an example of the institutional limitations faced by many local governments considering the introduction of virtual assets. It is being pointed out that for virtual assets to be utilized as a means of managing public finance assets, the relevant laws and accounting standards must first be revised.
