Wu Jiexhuang, a member of Hong Kong’s Legislative Council, suggested that Hong Kong should leverage China’s “one country, two systems” policy to incorporate Bitcoin into its national reserves. Speaking to the state-owned newspaper Wen Wei Po, Jiexhuang proposed that Hong Kong could study the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs).

Jiexhuang pointed to smaller countries, such as El Salvador and Bhutan, that have integrated Bitcoin into their strategic reserves, as well as certain U.S. states. He also mentioned U.S. President-elect Donald Trump‘s proposal to recognize Bitcoin as a strategic reserve asset, which could significantly impact traditional markets.

China’s Role in Ensuring Hong Kong’s Financial Stability

According to Jiexhuang, Hong Kong authorities should make good use of the “one country, two systems” framework, first by trying to incorporate Bitcoin into ETFs before exploring further ways to increase Hong Kong’s Bitcoin holdings.

Jiexhuang emphasized Bitcoin’s potential to attract talent and investment while also reinforcing financial stability amid market fluctuations. He argued that holding Bitcoin as part of national reserves could mitigate disruptions caused by wider adoption in traditional markets, providing Hong Kong with a first-mover advantage.

The report also mentioned that Hong Kong’s Financial Services and the Treasury Bureau will develop cryptocurrency regulations based on the “same business, same risks, same rules” philosophy.

Jiexhuang concluded, “If major economic powers take the lead in including Bitcoin in strategic reserves, the value of Bitcoin will become more stable, causing other countries to follow suit and reduce their holdings of traditional assets.”

He added, “This would lead to a decrease in the price of traditional assets and shrink the fiscal reserves held in traditional assets by governments.”

Hong Kong Regulators Aim To Make A Significant İnvestment in Bitcoin

According to the report, China currently holds 190,000 Bitcoin through various confiscation efforts, making its Bitcoin reserve second only to that of the United States.

In mid-2024, another Hong Kong Legislative Council member, Johnny Ng, announced plans to collaborate with various stakeholders to assess the feasibility and potential benefits of incorporating Bitcoin into the special administrative region’s financial reserves.

Related tweet:

Ng emphasized the increasing global awareness of Bitcoin, noting that it has become a key element in discussions about digital assets and their integration into traditional financial systems.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post A Hong Kong Legislator Has Proposed Adding Bitcoin To The National Reserves appeared first on Coin Engineer.