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In mid-November, with the news of Trump's election and his campaign promises on cryptocurrencies, the crypto market ushered in an epic boost, with BTC rising from 68,000 to 100,000. This move may overturn BTC's traditional bull-bear cycle. In other words, any slight "stir" in the future may cause drastic fluctuations in the market situation.
As for the BTC strategic reserve, it was first proposed by Senator Cynthia Lummis on July 31, 2024 (BITCOIN Act of 2024). The bill proposes that the Federal Reserve will purchase 200,000 BTC each year to replace gold as a new strategic reserve, reaching 1 million BTC within five years.
There are still 17 days left before Trump returns to the White House. At the end of December 2024, a draft executive order on the strategic reserve of Bitcoin was released. The content is to establish a strategic reserve of Bitcoin with a ratio of 1% to 5% of the national debt, led by the Ministry of Finance and coordinated by the Federal Reserve. Although Federal Reserve Chairman Powell said that the Federal Reserve has no intention of participating and the matter should be decided by Congress, the Trump team is still actively promoting the plan and has received the support of the Secretary of the Treasury who is open to crypto assets.
📍Hong Kong includes BTC in its fiscal reserves?
Recently, Hong Kong Legislative Council member Wu Jiezhuang pointed out that the advantages of "one country, two systems" should be used to pilot the inclusion of Bitcoin in the foreign exchange fund to explore the application and management path of Bitcoin for the country. Bitcoin's low storage and transaction costs make it possible to replace traditional precious metals such as gold.
At present, Bitcoin's function of preserving value is greater than its function of increasing value. Hong Kong's "dual license" system has made progress in the regulation of cryptocurrencies, but global supervision is still increasing. Stablecoins are an important infrastructure for virtual assets. Hong Kong is promoting relevant regulatory regulations, but the issue of cross-border regulatory cooperation needs to be resolved. The trend of Bitcoin as a strategic reserve is worth paying attention to, and China may follow the example of the United States.
Hong Kong’s “dual license” system is a positive exploration, but it still needs to be aligned with the international regulatory framework, and stablecoin regulation is a key link
The exploration of Bitcoin strategic reserves by countries such as the United States and China is worth paying attention to, which may have an important impact on the future development of Bitcoin. And Binance founder Zhao Changpeng said that China will become one of the countries adopting Bitcoin strategic reserves, and may follow the plan of the new Trump administration. He emphasized that Bitcoin is the only "hard asset."
🔹 Wu Jiezhuang's views reflect Hong Kong's active exploration in the field of cryptocurrency. The global cryptocurrency regulatory landscape is still evolving, and Hong Kong's "dual license" system and stablecoin regulatory framework will face challenges. The trend of Bitcoin as a strategic reserve is undoubtedly the biggest highlight this year.