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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 to foster the development of the local crypto industry and attract investment. The move, if implemented, could put Hong Kong at the forefront of the cryptocurrency revolution.
According to a report from Wen Wei Po, Wu Jiexhuang, a member of the Hong Kong legislative council, has suggested using foreign exchange funds to acquire and hold BTC in the long term. He believes that including BTC in Hong Kong’s reserves could encourage the growth of the local crypto industry, attract talent and investment, and increase transaction stamp tax revenue.
The proposal is not unprecedented, as other lawmakers have made similar suggestions before. In July 2024, another legislative council member, Johnny Ng, also proposed incorporating BTC into Hong Kong’s fiscal reserves, citing the example set by U.S. President Donald Trump who vowed to create a national Bitcoin reserve at the Bitcoin Conference in Nashville earlier this year.
Jiexhuang highlighted the potential benefits of buying and holding BTC, but also acknowledged the risks associated with investing in the asset. He urged the government to allocate a small percentage of the national reserves to the asset, starting with Bitcoin exchange-traded funds (ETFs).
Hong Kong has already been exploring the possibility of incorporating digital assets into its financial system. In 2024, the city’s Monetary Authority announced that it would be establishing a new regulatory framework for virtual currencies and other digital assets.
The proposal comes as countries around the world are increasingly considering the use of cryptocurrencies in their monetary policies. Some lawmakers have also called for the adoption of Bitcoin as a reserve asset, with Germany being the latest country to propose the adoption of BTC as its national currency.
It remains to be seen whether Jiexhuang’s proposal will gain traction and become a reality. However, one thing is certain – the world is moving towards a more decentralized financial system and Hong Kong is well-positioned to take advantage of this trend if it chooses to do so.
Source: cryptopotato.com
