#BtcNewHolder
The Central Bank emphasizes the need to regulate the cryptocurrency sector following a meeting between representatives of the Chinese government and El Salvador.
The Central American nation saves in BTC with an eye on its economic growth.
Proposals for Bitcoin reserves in Hong Kong, ahead of China.
The People's Bank of China (PBOC) has emphasized the need for regulation in the Bitcoin (BTC) sector and other cryptocurrencies. This happens just a week after representatives from that Asian country met with those from El Salvador. During this meeting, Bitcoin was highlighted as a key element in President Nayib Bukele's strategy to strengthen the economic growth of the Central American nation.
The government of El Salvador reported that its vice president, Félix Ulloa, held a meeting with the ambassador of the People's Republic of China in Salvadoran territory, Zhang Yanhui, with the aim of strengthening bilateral ties and advancing projects to improve digital connectivity and economic growth.
According to the vice presidency office of El Salvador, during the meeting, Ulloa highlighted how the Central American country has transformed into a model of financial freedom and digital economy, having a Bitcoin treasury that exceeds 6,000 coins. Among the key initiatives mentioned are 'El Salvador Vuela,' which focuses on modernizing and expanding aviation infrastructure, and the submarine cable, aimed at improving digital infrastructure to strengthen the country's connectivity sovereignty.
Last April, Ulloa held a meeting with Chinese Vice President Han Zheng in Beijing, the capital of China. Now, in its recent publication of the 2024 Financial Stability Report, the PBOC underscores the need for specific regulation for cryptocurrencies. The report, released on Friday, includes a section dedicated to the supervision of digital assets, highlighting Hong Kong's innovative approach to this sector.
The People's Bank of China recalls in its report the complete ban that exists in the country on trading digital assets and Bitcoin mining since September 2021. However, it highlights the contrast that exists with Hong Kong, which has adopted a more permissive path.
Although geographically part of the same nation, China and Hong Kong present significant differences in terms of political, social, cultural, and economic systems, including their views on digital assets. While mainland China maintains a strict stance, Hong Kong has taken a different path.
Since June 2023, the special administrative region launched a licensing scheme for cryptocurrency trading platforms, allowing licensed exchanges to offer services to retail customers. This move reflects Hong Kong's intention to become a leading financial center for innovation in cryptocurrencies.
Additionally, the PBOC has expressed its commitment to improving an international regulatory framework for cryptocurrency assets, in line with the recommendations of the Financial Stability Board. And although El Salvador is not mentioned in the report, one could think that the Central American nation may be influencing a change in stance from Chinese authorities.
As previously reported by CriptoNoticias, there are suspicions that 'China would unlock Bitcoin with Trump in the White House.' The phrase is from the president and CEO of HashKey Group, Xiao Feng, who believes that the new government of Donald Trump could activate the Chinese government's interest in cryptocurrency trading and mining markets, unlocking the ban imposed in 2021.
Additionally, Feng believes that the possibility of the United States gaining greater strength as a leader in the Bitcoin ecosystem could mobilize the competitive spirit of the Chinese.
Hong Kong would have a Bitcoin treasury like El Salvador.
The fact that the United States could have a Bitcoin treasury following in El Salvador's footsteps is something that has generated reactions around the world, including in Hong Kong, where Wu Jiezhuang, a member of the Legislative Council and chairman of the Web3 Virtual Assets Development Subcommittee, suggests that the region should not be left behind in the trend that is moving the world.
During an interview with the Wen Wei Po newspaper, Wu Jiezhuang highlighted the need for Hong Kong to study how to maintain its financial security in this new context. Thus, he proposed to leverage the principle of 'one country, two systems' to include Bitcoin in national reserves. 'Some small countries have already taken this step, even adopting Bitcoin as legal tender,' Wu commented, referring to El Salvador and emphasizing the possibility of allocating up to 10% of fiscal reserves to BTC to diversify investments.
'Governments cannot look the other way,' Wu stated, emphasizing the importance of assessing how the decision to have a Bitcoin treasury could enhance Hong Kong's financial security.
In other countries, there is also talk of following El Salvador's model, such as in Brazil, where deputy Eros Biondini presented a bill to create a BTC treasury. Meanwhile, in Japan, senator Satoshi Hamada urged the government to join the national Bitcoin reserves craze, highlighting its independence from national influences.
As part of the global movement, the mayor of Vancouver, Canada, proposed a motion to use digital currency as a reserve asset; meanwhile, in Venezuela, opposition leader María Corina Machado has discussed the creation of a BTC reserve as a solution to the country's economic crisis and inflation. And in Russia, deputy Anton Tkachev has requested the government to create a Bitcoin treasury.