Proposal for Bitcoin Integration into Fiscal Reserves Presented by Hong Kong Lawmaker
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Hong Kong Lawmaker Proposes Incorporating BTC Into Region’s Fiscal Reserves
A Hong Kong lawmaker has proposed incorporating Bitcoin (BTC) into the region’s fiscal reserves. According to a report, Wu Jiexhuang, a member of the Hong Kong legislative council, suggested that using foreign exchange funds to acquire and hold BTC in the long term could enhance financial security.
Wu Jiexhuang believes that adding BTC to Hong Kong’s fiscal reserves could encourage the development of the local crypto industry, attract talent and investment, and increase transaction stamp tax revenue. By incorporating BTC into its reserves, Hong Kong could gain a first-mover advantage and help authorities reduce economic disruptions caused by broader adoption of the asset in traditional markets.
Wu Jiexhuang emphasized that including BTC as a reserve asset would stabilize its value, resulting in more countries following suit and reducing their holdings of traditional assets. This would lead to a decrease in the price of traditional assets, ultimately shrinking the government’s fiscal reserves holding traditional assets.
While Wu Jiexhuang acknowledged the risks associated with investing in BTC, he advised allocating a small percentage of national reserves to the asset, starting with Bitcoin exchange-traded funds (ETFs). He urged the government to study the impact of the United States’ spot Bitcoin ETF market on the country’s finance industry and act accordingly.
This proposal is not unprecedented; another legislative council member, Johnny Ng, made a similar suggestion in July 2024. This comes after U.S. President Donald Trump vowed to create a national Bitcoin reserve at the Bitcoin Conference in Nashville earlier this year. Both politicians believe that Trump’s proposal could have a significant impact on traditional markets and suggest that Hong Kong could position itself as a financial hub promoting such technological advancements.
In addition, lawmakers in Germany are also proposing the adoption of BTC as the country’s reserve asset.
Source: cryptopotato.com
