According to Odaily Odaily, Vancouver city officials have recommended closing a council motion exploring whether the city could become a "Bitcoin-friendly city," arguing that a review has determined the Vancouver Charter does not permit the holding of Bitcoin as a municipal reserve asset.
In a report submitted to the city council, staff stated that it had been "finalized" that Bitcoin is not a "permitted investment asset" and recommended that the motion be closed within a framework of realigning resources and priorities. The proposal stemmed from a motion pushed by Mayor Ken Sim over a year ago, which asked staff to study the possibility of the city accepting cryptocurrency tax payments and converting a portion of its fiscal reserves into Bitcoin.
The British Columbia Ministry of Municipal Affairs had previously stated that, according to provincial regulations, municipalities are prohibited from holding fiscal reserves in the form of cryptocurrency, with the legislation aimed at ensuring that local government funds are not subjected to excessive risk. Pete Fry, the sole opponent of the motion in parliament, told local media that he had previously believed the proposal had been shelved. Kevin Lee, Chief Commercial Officer of crypto exchage Gate, told Decrypt that the legal and financial obstacles were understood from the outset, and the termination of the process was not surprising. Dominick John, an analyst at Zeus Research, stated that municipal treasuries are structured with capital preservation as their primary goal, and similar cities will remain in the research phase until legislation, accounting treatment, and custodial frameworks are perfected.
