Hong Kong Legislator Advocates for Bitcoin Inclusion in National Reserves to Boost Financial Stability
by aria-crypto.com
December 30, 2024 at 11:12
Hong Kong Legislator Advocates for Bitcoin Inclusion in National Reserves to Boost Financial Stability
Hong Kong legislator Wu Jiexhuang has proposed leveraging the city’s “one country, two systems” framework to include Bitcoin in its national reserves, aiming to bolster financial security.
Speaking to state-owned newspaper Wen Wei Po, Jiexhuang suggested Hong Kong should study the impact of U.S.-based Bitcoin exchange-traded funds (ETFs) on the market as a preliminary step.
Drawing comparisons to nations like El Salvador and Bhutan, which have integrated Bitcoin into their reserves, and certain U.S. states, Jiexhuang highlighted the growing global acceptance of Bitcoin.
He also referenced U.S. President-elect Donald Trump’s proposal to classify Bitcoin as a strategic reserve asset.
Jiexhuang urged Hong Kong authorities to explore including Bitcoin in ETFs as a first move, which could later pave the way for increased Bitcoin holdings.
He argued that such a step would attract talent and investment, reinforce financial stability, and mitigate market disruptions caused by Bitcoin’s broader adoption.
By acting early, Hong Kong could secure a competitive edge in the global financial landscape.
The legislator emphasized that holding Bitcoin in reserves could stabilize its value as more countries adopt it, reducing reliance on traditional assets.
“If major economic powers include Bitcoin in their strategic reserves, its value will stabilize, encouraging others to follow suit. This could reduce traditional asset holdings, potentially impacting fiscal reserves tied to those assets,” Jiexhuang stated.
The report also noted that Hong Kong’s Financial Services and the Treasury Bureau plans to regulate cryptocurrencies under the principle of “same business, same risks, same rules.”
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