A Hong Kong legislator is pushing for the region to consider adding Bitcoin to its national reserves, leveraging China’s “one country, two systems” policy.
According to a local media report, Wu Jiexhuang, a member of Hong Kong’s Legislative Council, suggested studying the impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs) to explore this idea further.
Jiexhuang pointed to smaller countries like El Salvador and Bhutan, which have already integrated Bitcoin into their reserves, as well as U.S. states, as examples of the cryptocurrency’s potential.
He also noted that U.S. President-elect Donald Trump’s plan to make Bitcoin a strategic reserve asset could shake up traditional financial markets. Hong Kong’s authorities, according to Jiexhuang, should first explore Bitcoin ETFs and then consider increasing Bitcoin holdings to boost financial stability.
He argued that incorporating Bitcoin into reserves could help attract talent and investment while reducing the volatility caused by wider adoption in traditional markets. This move could offer Hong Kong a first-mover advantage, setting the region apart.
Jiexhuang also emphasized that Bitcoin’s inclusion in reserves by major economic powers would stabilize its value, encouraging other countries to follow suit. As a result, this shift could reduce the reliance on traditional assets, potentially driving down their value and shrinking government reserves.
Hong Kong regulators are also preparing to introduce crypto regulations, with a focus on treating digital assets similarly to traditional financial products. With the growing global awareness of Bitcoin, Hong Kong could soon play a major role in digital finance.
Also Read: Hong Kong Licenses New Crypto Exchanges Amidst Bitcoin Surge
