A Hong Kong legislator has proposed incorporating Bitcoin into the region’s national reserves, utilizing the “one country, two systems” framework to bolster financial stability. Wu Jiexhuang, a member of Hong Kong’s Legislative Council, highlighted the potential benefits by referencing smaller nations like El Salvador and Bhutan, which have already included Bitcoin in their strategic reserves. He also noted the interest from some US states, and President-elect Donald Trump’s suggestion to consider Bitcoin as a strategic reserve asset, which could influence traditional markets.
Jiexhuang suggested that Hong Kong should explore adding Bitcoin to exchange-traded funds (ETFs) as an initial step. This move, he argued, could attract investment and talent while enhancing financial stability amid global market fluctuations. The legislator emphasized that embracing Bitcoin could position Hong Kong advantageously in the evolving market landscape.
He further mentioned that if major global economies begin to adopt Bitcoin as a strategic reserve asset, it would likely lead to increased Bitcoin price stability, encouraging others to decrease their reliance on traditional assets. This shift could, according to Jiexhuang, result in a decline in the value of traditional assets and impact fiscal reserves held in these assets.
Currently, China is reported to hold 190,000 Bitcoin, acquired through various confiscation efforts, making its reserve second only to the United States. Meanwhile, another Hong Kong legislator, Johnny Ng, has also voiced plans to assess the potential benefits of integrating Bitcoin into the region’s financial reserves, recognizing the growing global attention on digital assets and their role in conventional financial systems.
