Hong Kong legislator proposes adding Bitcoin to national reserves

A Hong Kong legislator has proposed integrating Bitcoin (CRYPTO:BTC) into the region's national reserves, leveraging China’s "one country, two systems" framework for financial security.

Wu Jiexhuang, a member of Hong Kong's Legislative Council, suggested that Hong Kong explore the impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs) as a step toward including Bitcoin in the region's strategic reserves.

Jiexhuang drew attention to smaller nations like El Salvador and Bhutan, which have already incorporated Bitcoin into their reserves, and noted that some U.S. states have taken similar steps.

He also mentioned that U.S. President-elect Donald Trump’s proposal to include Bitcoin as a strategic asset could influence traditional markets significantly.

He emphasised the role of Bitcoin in attracting talent and investment, suggesting that it could enhance financial stability amid market fluctuations.

By holding Bitcoin in its national reserves, Hong Kong could reduce risks from broader adoption in traditional markets and potentially gain a first-mover advantage.

Jiexhuang further highlighted that including Bitcoin in strategic reserves could stabilise its value, prompting more countries to follow suit and shift away from traditional assets.

He pointed out that China, with its Bitcoin reserves obtained through confiscation, holds the second-largest Bitcoin reserve after the U.S.

Hong Kong’s Financial Services and the Treasury Bureau is expected to introduce crypto regulations based on a "same business, same risks, same rules" approach.

Another Hong Kong legislator, Johnny Ng, also proposed collaborating with stakeholders to explore the feasibility of incorporating Bitcoin into Hong Kong's financial reserves in mid-2024.

At the time of reporting, the Bitcoin price was $92,138.55.