Hong Kong Legislator Proposes Adding Bitcoin to National Reserves for Financial Security

Hong Kong legislator Wu Jiexhuang has suggested that the region should consider adding Bitcoin to its national reserves as a means to boost financial security. Wu recommends that regulators study the impact of U.S.-issued Bitcoin exchange-traded funds on the market before making a decision.

China’s “One Country, Two Systems” Policy Offers Opportunity

Wu believes that Hong Kong can take advantage of China’s “one country, two systems” policy to include Bitcoin in its national reserve. China currently holds the second-largest Bitcoin reserve, worth 190,000 BTC, which was obtained through illegal trade confiscations.

“If major economic powers take the initiative to include Bitcoin in strategic reserves, the value of Bitcoin will be more stable, causing more countries to follow suit and minimize their traditional asset holdings.”

Advantages of Including Bitcoin in National Reserves

Wu specifically recommends Bitcoin due to its high trading volume on the market, making it a more desirable asset compared to traditional commodities like gold and silver. He cites examples of regions that have successfully added Bitcoin to their national reserves, including El Salvador and Bhutan, as well as several U.S. states.

Cryptocurrency Integration in Hong Kong’s Financial Institutions

Cryptocurrency is already integrated into Hong Kong’s financial institutions, with 12 Bitcoin and Ethereum ETFs listed on the Hong Kong Stock Exchange. The Hong Kong Monetary Authority has also invested in a small portion of cryptocurrency to diversify its assets.

Regulatory Framework for Holding Crypto Assets

Wu suggests that regulators apply the principle of “same business, same risk, same rules” when it comes to holding crypto assets within the national reserves. This approach would provide a clear framework for the inclusion of Bitcoin in Hong Kong’s national reserves.

Tips for investors considering Bitcoin and other cryptocurrencies:

  • Diversify your portfolio to minimize risk.
  • Stay informed about regulatory developments and market trends.
  • Consider the potential benefits of including Bitcoin in a national reserve.

For more news on cryptocurrency and finance, visit Global Crypto News.

Post Views: 0