FameEX Hot Topics | Hong Kong Lawmaker Suggests Adding Bitcoin to National Reserves

Hong Kong legislator Wu Jiexhuang has proposed that the region study the potential market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs), according to a report by state-owned newspaper Wen Wei Po. He stressed the importance of assessing how these developments could influence Hong Kong’s financial strategies amid the global growth of digital assets and cryptocurrency adoption.

Wu referenced examples of nations, including El Salvador and Bhutan, which have already incorporated Bitcoin into their strategic reserves. He also pointed to certain U.S. states adopting similar approaches and highlighted U.S. President-elect Donald Trump’s proposal to classify Bitcoin as a strategic reserve asset. Wu suggested such moves could significantly impact global financial markets, spurring broader adoption of cryptocurrencies.

Emphasizing Bitcoin’s ability to attract investment and talent, Wu argued that integrating Bitcoin into national reserves could strengthen Hong Kong’s financial stability during periods of economic uncertainty. He noted that such a step would reduce risks associated with increasing adoption in traditional markets and position Hong Kong as a leader in cryptocurrency integration, giving it a competitive edge.

The report further stated that Hong Kong’s Financial Services and Treasury Bureau plans to introduce crypto regulations based on the “same business, same risks, same rules” approach. Wu explained that if major economies adopt Bitcoin as a reserve asset, its value could stabilize, encouraging more countries to follow suit. This shift, however, might lower the value of traditional assets and impact fiscal reserves heavily reliant on them.

In mid-2024, Hong Kong legislator, Johnny Ng, proposed evaluating the feasibility of adding Bitcoin to the city’s financial reserves. Ng emphasized Bitcoin’s increasing global recognition and relevance in discussions about integrating digital assets into traditional financial systems, reflecting Hong Kong’s proactive stance on embracing cryptocurrency adoption.

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