A Hong Kong politician has taken a page out of Donald Trump’s playbook and proposed that the city should start stockpiling crypto.
Executive Council legislator Johnny Ng tweeted on July 28 that Hong Kong should make the move after the former US president said he would create a national stockpile of Bitcoin if reelected.
“The global acceptance of Bitcoin is constantly increasing,” Ng wrote. “In the future, it is indeed possible to research and consider including Bitcoin in strategic financial reserves, as long as it is compliant.”
Ng’s suggestion that the special administrative region should follow the septuagenarian presidential hopeful’s lead would not be out uncharacteristic for Hong Kong.
While the city is not averse to forging a path for itself in crypto, it also has a track record of following US politicos’ lead.
Trump’s proposal
Trump’s idea to create a US Bitcoin stockpile received support from Wyoming Republican Senator Cynthia Lummis, who plans to introduce a bill to establish a Bitcoin strategic reserve.
Lummis envisions the US holding one million Bitcoin, or 5% of the world’s supply, for at least 20 years.
The US government holds over 213,000 Bitcoin, valued at more than $14 billion, according to the crypto data platform Arkham.
Hong Kong
Hong Kong has charted its own path on cryptocurrency, distinct from mainland China’s strict regulations.
The city has positioned itself as a web3 hub and has already launched several crypto-related financial products.
Yet, it has a history of following the US’ lead.
For instance, it approved a smattering of spot Bitcoin exchange-traded funds in April, just months after US regulators did the same in January.
It also went a step further by approving three spot Ethereum ETFs.
On July 23, CSOP Asset Management, based in Hong Kong, introduced a Bitcoin “inverse” ETF, enabling retail investors to short Bitcoin.
Hong Kong has also introduced a new licensing regime for cryptocurrency exchange.
It took effect in early June and requires exchanges operating in Hong Kong to obtain a licence or be in the process of applying for one.
However, the lead-up to the deadline saw major exchanges like OKX, Gate.HK, and Bybit withdraw their applications.
Callan Quinn is an Asia Correspondent for DL News. Got a tip? Email her at callan@dlnews.com.
