Hong Kong lawmaker Wu Jie has called on the region’s government to explore the possibility of including Bitcoin in its fiscal reserves, according to a local media report.
The report revealed that Wu suggested the Hong Kong Special Administrative Region (SAR) consider adding cryptocurrencies to its fiscal reserves and utilize foreign exchange funds to acquire and maintain digital assets over the long term.
The lawmaker emphasized the global impact of major economies adopting Bitcoin into their reserves. Wu argued that Bitcoin’s finite supply could make it a competitor to traditional assets and serve as a hedge against inflation.
Acknowledging Bitcoin’s volatility, Wu recommended that governments and businesses allocate only a small portion of their reserves to the asset. He stressed that careful adoption could enhance financial systems while minimizing exposure to unnecessary risks.
Wu also suggested that if “influential” countries adopt Bitcoin, its value could stabilize, leading to broader global acceptance. This shift may reduce dependence on traditional reserves like gold and silver, as Bitcoin offers practical advantages with lower storage and transaction costs.
The lawmaker also highlighted Bitcoin’s increasing integration into mainstream finance, pointing to the Hong Kong Stock Exchange’s Bitcoin and Ethereum-linked ETFs and the licensing of crypto trading platforms as significant developments.
This report built on Hong Kong lawmaker Johnny Ng’s recent inquiry into the potential inclusion of Bitcoin in the city’s investment strategy. In a December 11 statement, Ng questioned whether the Hong Kong Monetary Authority’s Exchange Fund could have held Bitcoin as part of its long-term fiscal reserves. He also raised concerns about the broader implications of foreign nations adopting Bitcoin as a reserve asset, urging the government to assess its potential impact on Hong Kong’s economic stability and financial security.
Additionally, Ng called for easing banking restrictions on crypto and Web3 firms, highlighting the ongoing challenges these companies faced in opening local bank accounts. In a past post on X, he stressed that these barriers had hindered business operations. The lawmakers advocated expanding virtual bank services to support Web3 development better so that the island can achieve its ambitions of becoming a global leader in the crypto space.
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