FameEX Hot Topics | Hong Kong Legislator Proposes Including Bitcoin in National Reserves

Hong Kong legislator Wu Jiexhuang suggested that the region should examine the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs), as reported by state-owned newspaper Wen Wei Po. He emphasized the importance of evaluating how such developments could shape Hong Kong’s financial strategies amid the global rise of digital assets.

Wu cited examples of nations like El Salvador and Bhutan, which have adopted Bitcoin as part of their strategic reserves, as well as certain U.S. states taking similar approaches. He also referenced U.S. President-elect Donald Trump’s proposal to classify Bitcoin as a strategic reserve asset, predicting it could significantly influence traditional financial markets worldwide.

Wu highlighted Bitcoin’s potential to attract investment and talent while reinforcing financial stability during economic volatility. He argued that including Bitcoin in national reserves could shield Hong Kong’s financial system from disruptions caused by wider crypto adoption. Such a move, he added, could provide the region with a competitive advantage as a leader in cryptocurrency integration.

The report noted that Hong Kong’s Financial Services and Treasury Bureau is preparing crypto regulations based on the principle of “same business, same risks, same rules.” Wu stated that if major economies adopt Bitcoin as a reserve asset, it could stabilize its value, encourage other nations to follow suit, and reduce reliance on traditional assets, potentially impacting their prices and government reserves.

In mid-2024,Hong Kong legislator, Johnny Ng , proposed assessing the feasibility of adding Bitcoin to the city’s financial reserves. Ng underscored the rising global recognition of Bitcoin, emphasizing its growing relevance in discussions about integrating digital assets into conventional financial systems and highlighting Hong Kong’s proactive stance on crypto adoption.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.