Hong Kong legislator Wu Jiexhuang has pushed for together with Bitcoin within the nation’s nationwide reserves to make sure monetary safety and additional diversify strategic belongings. In an interview lately with the native newspaper Wen Wei Po, Council Member Wu, additionally Chairman of the Web3 Subcommittee on Digital Asset Growth, referred to as for the area’s nationwide reserves to incorporate Bitcoin.
Wu argued that Hong Kong might make the most of China’s “one nation, two techniques” coverage to incorporate Bitcoin in its reserves with out essentially contradicting the regulatory framework in mainland China. He defined that regulators should first examine the affect of U.S.-issued Bitcoin ETFs earlier than taking any motion.
Bitcoin As a Strategic Reserve Asset
The lawmaker additional mentioned that China is already the world’s second-largest holder of Bitcoin reserves, with 190,000 BTC confiscated from unlawful trades. He added that if main economies begin to put Bitcoin into their reserves, it might stabilize the worth of Bitcoin and encourage different nations to do the identical, decreasing dependence on conventional belongings like gold and silver.
Wu beneficial Bitcoin over “small currencies” as a result of its excessive buying and selling quantity, which provides to its market desirability. He used examples of jurisdictions like El Salvador and Bhutan which have already built-in Bitcoin into their nationwide reserves and several other U.S. states with cryptocurrency methods in place.
Rising Crypto Integration into Hong Kong
Wu defined that Hong Kong’s monetary system is already adopting cryptocurrency in additional methods. Presently, 12 ETFs monitoring Bitcoin and Ethereum commerce on the Hong Kong Inventory Alternate. HKMA reportedly has taken a small quantity of publicity to cryptocurrency, hedging its investments in such rising markets.
He mentioned this whereas calling on regulators to undertake a prudent but progressive method, utilizing the “similar enterprise, similar danger, similar rule” when coping with crypto belongings throughout the nationwide reserves.
That additionally got here in tune with broader tendencies worldwide within the second half of this yr when totally different lawmakers requested that Bitcoin be adopted into their nationwide reserves. Inside latest months, there have been such strategies in Japan, Russia, and the European Union as some governments proceed to carry out the skeptical viewpoint, although, and different governments are trying towards assessing a possible upside to holding Bitcoin as a strategic reserve asset.
The US has been within the vanguard. A number of states have already included Bitcoin of their monetary plans, though vast federal acceptance stays uncertain.
This isn’t the primary time lawmakers in Hong Kong have mentioned together with cryptocurrencies within the area’s fiscal insurance policies. On Dec. 11, legislator Johnny Ng referred to as for including crypto belongings to Hong Kong’s fiscal reserves. Joseph Chan, the Secretary for Monetary Providers and the Treasury, expressed opposition on the time, citing that “crypto belongings should not our goal funding for Hong Kong Alternate Fund.”
Wu believes that including Bitcoin to Hong Kong’s reserves will assist the Metropolis’s monetary resilience and security, particularly within the quickly altering financial surroundings.
Accordingly, the strategic inclusion of Bitcoin on this regard will place Hong Kong as a number one function participant within the digital asset area and guarantee its monetary system stays future-ready. As the controversy goes on, the proposal factors to the rising affect of cryptocurrency in setting fiscal insurance policies throughout the globe. It’s but to be seen if Hong Kong will take this daring step.
