
According to Legislative Council member Wu Jiexhuang, Hong Kong should take advantage of its “one country, two systems” policy to include Bitcoin in its national reserves.
Speaking to local media outlet Wen Wei Po, MLA Said Bitcoin has the potential to attract foreign investment and talent to the Special Administrative Region, as well as strengthen the financial stability of the country.
Jiexhuang noted efforts by smaller countries around the world, such as El Salvador and Bhutan, that have already integrated major cryptocurrencies into their reserves.
he also touched development in the united statesWhere incoming President Donald Trump has vowed to make Bitcoin a reserve asset.
Jiexhuang believes such initiatives by major economic powers could stabilize the value of Bitcoin, prompting other countries to follow suit and reduce their reliance on traditional assets.
He said this could impact the traditional sector, ultimately “depleting the fiscal reserves of the government holding traditional assets.”
Additionally, he compared Bitcoin’s storage facility to traditional precious metals such as gold and silver, arguing that Bitcoin’s lower storage and logistics costs could make it a better reserve asset over time.
As such, Jiexhuang is urging hong kong To gain a first-mover advantage by exploring the inclusion of Bitcoin in its reserves, in the hope that it can minimize the disruptions caused by its adoption in global financial systems.
However, the legislator acknowledged the risks associated with Bitcoin and recommended that it should make up only a small portion of the reserves.
He suggested taking advantage of Hong Kong’s unique status under “one country, two systems” to promote these efforts.
This unique arrangement provides Hong Kong with greater financial and regulatory flexibility, allowing it to experiment with innovative financial strategies – such as integrating Bitcoin into its reserves – without directly influencing mainland China’s financial policies.
He concluded that Hong Kong should carefully monitor developments in the US and adopt a cautious strategy.
“If the US is seen to continue increasing its Bitcoin holdings, the Hong Kong government should carefully consider holding a proportionate amount of Bitcoin in its reserves.”
It should be noted that China already has a large share of the flagship crypto, with its current holdings amounting to 190,000, according to Wen Wei Po. This makes the country the second largest holder of Bitcoin after the US.
Bitcoin reserve movement is getting stronger
Around the world, calls for creating Bitcoin reserves have intensified among policymakers, especially since Bitcoin surged above $100,000 earlier this month.
On December 30, former German Finance Minister Christian Lindner called on the country’s central bank to include cryptocurrencies like Bitcoin as reserve assets, according to MP Joanna Cotter. equal effort earlier this year.
Elsewhere, French Parliament member Sarah Knafo said during a December 17 speech european nations The U.S. should start considering creating a national Bitcoin reserve and focus on developing the crypto-mining industry.
Last month, Polish minister and presidential candidate Sławomir Mentzen vowed to create a Bitcoin reserve and introduce crypto-friendly regulations if elected in 2025.
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