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Title: Hong Kong Lawmaker Proposes Incorporating BTC Into Region’s Fiscal Reserves
Hong Kong may be considering a bold move to incorporate Bitcoin (BTC) into its fiscal reserves, as reported by Wen Wei Po. Wu Jiexhuang, a member of the Hong Kong legislative council, has proposed adding BTC to the region’s reserve assets in order to foster the development of the local crypto industry and attract investment.
According to reports, Jiexhuang suggested that Hong Kong could utilize foreign exchange funds to acquire and hold BTC in the long term. By doing so, he believes it would encourage the growth of the crypto industry locally, draw in talent and investment, and even increase transaction stamp tax revenue.
The move is seen as an opportunity for Hong Kong to capitalize on China’s “one country, two systems” policy. By taking a lead in incorporating BTC into its reserves, Jiexhuang argues that it could provide a first-mover advantage for the region, thereby enabling authorities to reduce economic disruptions caused by broader adoption of the asset in traditional markets.
The proposal does not come without risks, however. The lawmaker emphasized the need for caution and urged the government to allocate a small percentage of its reserves to BTC, starting with Bitcoin exchange-traded funds (ETFs). He also advised studying the impact on Hong Kong’s finance industry by considering the United States’ spot Bitcoin ETF market.
It is worth noting that this proposal is not new. In July 2024, another legislative council member, Johnny Ng, made a similar suggestion following U.S. President Donald Trump’s promise to establish a national Bitcoin reserve at the Bitcoin Conference in Nashville earlier this year.
Source: cryptopotato.com
