A legislator in Hong Kong is advocating for the incorporation of Bitcoin into the region’s national reserves, citing the need to leverage China’s “one country, two systems” policy for enhanced financial security. Wu Jiexhuang, a member of Hong Kong’s Legislative Council, argued in an interview that the region should investigate the implications of spot Bitcoin exchange-traded funds (ETFs) as seen in the United States.
Jiexhuang pointed to countries like El Salvador and Bhutan that have successfully integrated Bitcoin into their strategic reserves. He also mentioned the growing acceptance of Bitcoin among certain U.S. states. The legislator believes that the recent suggestion from the U.S. regarding Bitcoin as a strategic reserve asset could significantly influence traditional markets.
He emphasized that Hong Kong’s authorities could benefit from embracing Bitcoin on a larger scale by initially including it in ETFs. This strategic move could help attract investment and talent to the region while promoting financial stability amidst variable market conditions. Holding Bitcoin in national reserves, according to Jiexhuang, could serve as a buffer against fluctuations arising from the wider adoption of cryptocurrencies in mainstream finance.
The Financial Services and Treasury Bureau in Hong Kong is reportedly drafting new cryptocurrency regulations guided by the principle of treating similar businesses with the same risks and rules. Jiexhuang further noted that if significant global economies begin to integrate Bitcoin into their reserves, it could lead to increased stability in Bitcoin ’s value. This might trigger a trend where other nations follow suit, potentially decreasing their traditional asset holdings, which could in turn impact the value of those traditional assets.
Current insights suggest that China possesses approximately 190,000 Bitcoin through various confiscation measures, making it one of the largest holders globally. Meanwhile, another member of the Legislative Council, Johnny Ng, is working with various stakeholders to explore the implications of adding Bitcoin to Hong Kong’s financial reserves, aligning with the growing international recognition of Bitcoin as a component of conventional financial discourse.
