A Hong Kong legislator suggesting that the city should add Bitcoin to its national reserves.
Wu Jiexhuang, a member of Hong Kong’s Legislative Council, believes that leveraging China’s one country, two systems policy could pave the way for this move aimed at boosting financial stability.
One domino after another
Jiexhuang recently shared his thoughts with state-owned newspaper Wen Wei Po, pointing out that Hong Kong could learn a thing or two from U.S.-based spot Bitcoin ETFs, and he highlighted how smaller countries like El Salvador and Bhutan have already integrated Bitcoin into their strategic reserves.
And let’s not forget about some U.S. states getting in on the action too.
He even mentioned Donald Trump’s proposal to make Bitcoin a strategic reserve asset, which could shake things up in traditional markets. Imagine the ripple effect if major economies jump on this bandwagon.
Why Bitcoin?
Adding Bitcoin to national reserves could attract talent and investment while providing a safety net during market fluctuations.
He argues that holding Bitcoin could help mitigate disruptions caused by its growing acceptance in traditional finance, giving Hong Kong a first-mover advantage.
The Financial Services and the Treasury Bureau in Hong Kong is reportedly working on crypto regulations based on the principle of “same business, same risks, same rules.”
Competition, game theory
Jiexhuang believes this trend would prompt more countries to follow suit and shift away from traditional assets.
This shift could lead to a decline in the value of those trad assets, impacting government fiscal reserves held in conventional forms.
“If big economic players start including Bitcoin in their reserves, it could stabilize its value.”
Interestingly, China is already sitting on a treasure trove of 190,000 Bitcoin from various confiscation efforts, making it the second-largest holder after the U.S.
Meanwhile, another member of Hong Kong’s Legislative Council, Johnny Ng, is also looking into how incorporating Bitcoin into the region’s financial reserves could benefit everyone involved.
