The city government of Vancouver, Canada, has stated that Bitcoin cannot be held in municipal reserves and has recommended that the city council withdraw its proposal to create a Bitcoin reserve.
City staff, led by Colin Knight, director general of the Department of Finance and Supply Chain Management, have “definitely determined” that Bitcoin (BTC) is not a “permitted investment” under the Vancouver Charter, According to to the application update report from Monday.
Staff recommended combining the proposal with other related initiatives to reprioritize resources, with a final decision pending pending a vote by Council at its meeting scheduled for Tuesday.
The proposal to create a bitcoin reserve in Vancouver was originally introduced in delayed 2024 by Mayor Ken Sim as part of a motion titled “Protecting the City’s Purchasing Power by Diversifying Financial Reserves – Becoming a Bitcoin-Friendly City.”
The Council adopted the resolution with six votes in favor and two votes against. However, recent developments may reject this proposal.
Bitcoin’s inflation-hedge argument fades in the face of a bear market
Introducing the proposal in 2024, Mayor Sim said the proposal was partly intended to facilitate the city hedge against inflation using Bitcoin, which is often referred to as “digital gold” due to its fixed supply confined to 21 million coins.
“As an open, decentralized and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency depreciation” – conclusion To read.
Related: Bitcoin Forms Bottom as 4-Year Cycle Ends: CEO VanEck
The argument that Bitcoin acts as an inflation hedge has weakened recently as the price of the cryptocurrency has plummeted. Bitcoin is down about 50% from its October 2025 high of over $126,000, returning to delayed 2024 levels and briefly touching lows near $60,000.
Despite skepticism from some analysts who say Bitcoin does not behave like digital gold, macroeconomists such as Lyn Alden remain bullish on the digital asset over gold in the near term.
“If I had to bet on Bitcoin over gold in the next two to three years, I would bet on Bitcoin,” Alden said on the New Era Finance podcast on Wednesday.
Warehouse: Would Bitcoin Really Hit 200k? dollars if it weren’t for Jane Street? Trade Secrets