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Hong Kong Lawmaker Proposes Incorporating BTC Into Region’s Fiscal Reserves
A member of the Hong Kong legislative council has proposed incorporating Bitcoin (BTC) into the region’s fiscal reserves to foster the development of the local crypto industry, attract investment, and increase transaction stamp tax revenue.
According to reports from Wen Wei Po, Wu Jiexhuang suggested that Hong Kong use foreign exchange funds to acquire and hold BTC in the long term. This move, he believes, could encourage the growth of the local crypto industry, draw talent and investment, and boost transaction stamp tax revenue.
By incorporating BTC into its fiscal reserves, Hong Kong may be able to position itself as a financial hub promoting technological advancements. This initiative also follows in the footsteps of U.S. President Donald Trump’s vow to create a national Bitcoin reserve at the Bitcoin Conference in Nashville earlier this year.
Another local politician, Johnny Ng, has made a similar proposal in July 2024, citing Trump’s plan and advocating for Hong Kong to take advantage of its position as a financial center to promote technological innovations.
The proposal by these lawmakers is not without risk. They acknowledge that investing in BTC carries risks and are advising the government to start with a small allocation and focus on Bitcoin exchange-traded funds (ETFs) instead of direct investment.
Hong Kong already has a spot Bitcoin ETF market, but its inflows pale in comparison to U.S. spot Bitcoin ETFs. Despite these challenges, the proposal is seen as an opportunity for Hong Kong to take a leading role in the global crypto market.
In conclusion, the proposed initiative by lawmakers may have positive and negative impacts on the financial markets and traditional assets.
Source: cryptopotato.com
