A Hong Kong legislator is urging the special administrative region to consider adding Bitcoin to its national reserve as a means of enhancing financial security. Wu Jiexhuang, a member of Hong Kong’s Legislative Council, believes that the region can leverage China’s “one country, two systems” policy to explore the potential benefits of including Bitcoin in its strategic reserves.

Learning from International Precedents

Jiexhuang points to smaller nations like El Salvador and Bhutan, as well as certain US states, which have already integrated Bitcoin into their strategic reserves. He also notes that US President-elect Donald Trump’s proposal to make Bitcoin a strategic reserve asset could have a significant impact on traditional markets.

China’s Role in Ensuring Hong Kong’s Financial Stability

According to Jiexhuang, Hong Kong’s authorities should utilize the “one country, two systems” policy to first explore the inclusion of Bitcoin in exchange-traded funds (ETFs) before further increasing the region’s Bitcoin holdings. This move could attract talent and investment, while also reinforcing financial stability amid market fluctuations.

Regulatory Framework

The Financial Services and the Treasury Bureau of Hong Kong is set to formulate crypto regulations based on the “same business, same risks, same rules” philosophy. Jiexhuang believes that if major economic powers include Bitcoin in their strategic reserves, the value of Bitcoin will become more stable, leading to a potential shift away from traditional assets.

Hong Kong regulators are already taking steps to explore the potential benefits of Bitcoin. In mid-2024, Legislative Council member Johnny Ng announced plans to collaborate with stakeholders to assess the feasibility of incorporating Bitcoin into the region’s financial reserves. China currently holds 190,000 Bitcoin, making its reserve the second-largest after the United States.

Source: Cointelegraph.com

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