Hong Kong Legislative Council member and chairman of the Web3 Virtual Assets Development Committee, Wu Jiezhuang, recently made a bold proposal to 'include Bitcoin in Hong Kong's foreign exchange fund assets', attracting attention from all sectors.
As early as July this year, when Trump threatened to establish a 'national strategic reserve for Bitcoin', Wu Jiezhuang pointed out that Bitcoin and Web3 are important nodes in global development, and Hong Kong should also study and consider incorporating Bitcoin into its strategic financial reserves under compliance.
During a recent interview with (Wen Wei Po), Wu Jiezhuang further mentioned that if Trump vigorously promotes the inclusion of Bitcoin in strategic reserves, it will inevitably have a significant impact on reserve assets and even the global market, and governments around the world cannot turn a blind eye to it. He said:
If major economic powers actively incorporate Bitcoin into their strategic reserves, the value of Bitcoin will become more stable, prompting more countries to follow suit, and reducing the holding of traditional assets, which will lead to a decline in the prices of traditional assets, resulting in a shrinkage of government financial reserves that hold traditional assets.
He therefore still believes that Hong Kong must study how to maintain financial security in the context of the United States' involvement in Bitcoin and its impact on traditional asset markets.
Wu Jiezhuang raised several concerns to the Hong Kong government, including 'whether to consider incorporating cryptocurrencies into financial reserves' and considering 'using the foreign exchange fund to continuously purchase and hold long-term'; assessing the impact of foreign countries designating Bitcoin as a strategic reserve asset on the financial security of China and Hong Kong; and also thinking about how to leverage Hong Kong's first-mover advantage and unique resource conditions in the cryptocurrency field to make good strategic deployments.
However, Wu Jiezhuang also acknowledged that Bitcoin as a reserve asset still has certain limitations. For example, the current market capitalization of Bitcoin is about $1.8 trillion, which is still far behind gold's total market capitalization of $20 trillion; furthermore, the risks of investing in Bitcoin are not low. Besides the price volatility, investors only know how many wallets are approximately in the market but are unclear about the identities of those controlling these assets.
After balancing risks and returns, Wu Jiezhuang believes that the government and enterprises should only allocate a small portion of Bitcoin as financial assets.
"Legislative Council member Wu Jiezhuang proposed: Hong Kong's 'Foreign Exchange Fund Assets' should include Bitcoin". This article was first published on (Blockguest).
