Vancouver, Canada, metropolis employees stated Bitcoin can’t be held in municipal reserves and really helpful that the town council drop a proposal to create a Bitcoin reserve.
Metropolis employees, led by Colin Knight, basic supervisor of the Finance and Provide Chain Administration Division, “conclusively decided” that Bitcoin (BTC) will not be an “allowable funding” below the Vancouver Constitution, in accordance with a motions replace report dated Monday.
Employees really helpful merging the movement with different associated initiatives to reprioritize sources, with a last determination pending a council vote at a gathering slated for Tuesday.
The proposal to create a Vancouver Bitcoin reserve was initially launched in late 2024 by Mayor Ken Sim as a part of a movement titled “Preserving the Metropolis’s Buying Energy By way of Diversification of Monetary Reserves — Turning into a Bitcoin-Pleasant Metropolis.”
The council handed the movement with six votes in favor and two opposed. Nonetheless, the most recent developments might deny the proposal.
Bitcoin’s inflation hedge argument fades amid bear market
Introducing the proposal in 2024, Mayor Sim stated the movement was partly geared toward serving to the town hedge in opposition to inflation utilizing Bitcoin, which has usually been described as “digital gold” due to its fastened provide capped at 21 million cash.
“As an open, decentralized, and safe digital asset, Bitcoin has been acknowledged by many monetary specialists and analysts as a possible hedge in opposition to inflation and forex debasement,” the movement learn.
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The argument that Bitcoin acts as an inflation hedge has weakened just lately because the cryptocurrency’s value declined sharply. Bitcoin has fallen about 50% from its October 2025 peak of above $126,000, returning to late-2024 ranges and briefly touching lows close to $60,000.
Regardless of skepticism from some analysts who argue Bitcoin doesn’t behave like digital gold, macroeconomists equivalent to Lyn Alden stay bullish on the digital asset relative to gold within the close to time period.
“If I needed to guess Bitcoin versus gold over the subsequent two to 3 years, I’d guess Bitcoin,” Alden stated on the New Period Finance podcast on Wednesday.
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