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Hong Kong and Germany have both expressed interest in utilizing Bitcoin (BTC) as a national reserve asset, according to the latest reports.
Hong Kong’s Chairman of Web3 Virtual Asset Development Subcommittee, Wu Jiezhuang, has proposed integrating BTC into its exchange fund. According to him, this move would significantly enhance Hong Kong’s financial stability, given the increasing trend towards virtual currencies. Although the Treasury Bureau has not entirely endorsed the idea, they have acknowledged that external investment managers might have limited exposure to such assets through diversified portfolios.
This potential decision is seen as a significant step forward for the region, considering its already established crypto infrastructure. The Hong Kong Stock Exchange currently offers 12 ETFs linked to cryptocurrencies, with a combined market capitalization of HK$7.4 billion. This strong foundation could provide the city with the necessary experience to move forward with BTC as a reserve currency. Furthermore, it may also allow them to replicate smaller countries that have already adopted BTC as legal tender.
China is already an active holder of 190,000 Bitcoins, equivalent to $18 billion. This makes them the second-largest owner of BTC in the world, after the United States which owns 210,000 Bitcoins. These reserves could be incredibly valuable for China’s future economic policies, particularly considering the rapidly increasing value of Bitcoin.
In Germany, former Finance Minister Christian Lindner has suggested that both the European Central Bank and the Bundesbank should invest in Bitcoin. This stance takes into account the fact that countries are starting to consider launching their digital currencies, making the idea of BTC as a global reserve currency a possibility.
As more nations begin to contemplate introducing their own cryptocurrencies, it becomes crucial for Germany to act quickly and not be left behind by the United States.
Source: cryptotale.org
