Vancouver City Government in Canada has decided to terminate the Bitcoin reserve proposal after legal review.

PANews March 6 News, according to Decrypt, Vancouver city government staff have recommended terminating a city council motion exploring Vancouver becoming a “Bitcoin-friendly city” because its regulations do not allow Bitcoin to be held as municipal reserve assets. Staff stated in a report that Bitcoin is ultimately not considered an allowable investment asset and cited the Vancouver Charter, which specifies the use of municipal funds and does not permit Bitcoin as a reserve asset.

The motion was proposed over a year ago by Mayor Ken Sim, aiming to explore the possibility of accepting cryptocurrency for taxes and converting part of the city’s financial reserves into Bitcoin. The Ministry of Municipal Affairs of British Columbia at the time pointed out that, according to provincial regulations, municipal authorities cannot hold financial reserves in cryptocurrency, with the legislative intent to prevent local government funds from facing inappropriate risks.