cryptonewsz.com
Hong Kong legislator Wu Jiezhuang has suggested integrating Bitcoin(BTC) into the city’s fiscal reserves, proposing the use of the Exchange Fund to purchase and hold Bitcoin long-term. The move aims to stimulate the development of Hong Kong’s cryptocurrency industry, attract global funds and talent, and increase transaction stamp tax revenue.
Hong Kong’s Bitcoin Reserve Plans:
Hong Kong lawmaker have proposed incorporating Bitcoin into Hong Kong’s fiscal reserves and considering using the Exchange Fund to continue purchasing and holding it for a long time to stimulate the development of the cryptocurrency industry in Hong Kong, attract funds and…
— Wu Blockchain (@WuBlockchain) December 30, 2024
Wu, a member of the Legislative Council and chairman of the Web3 Virtual Asset Development Subcommittee, highlighted the strategic advantages of leveraging Bitcoin in response to its growing adoption in global markets. In a recent interview, he noted that the U.S., under President-elect Trump, has positioned Bitcoin as a government strategic reserve asset, propelling a surge in the market value and challenging traditional assets.
He argued that Hong Kong should utilize its unique “one country, two systems” framework to explore Bitcoin’s potential for enhancing financial security and diversifying reserve assets. Wu pointed out that other countries and even some U.S. states have started incorporating Bitcoin into their reserves, citing BTC as a hedge against inflation and excessive currency issuance.
While acknowledging Bitcoin’s volatility and cybersecurity risks, Wu pitched for BTC’s inclusion in government reserves in a limited capacity. He highlighted Bitcoin’s growing adoption, derivatives market, and increasing integration into mainstream finance, which he believes could benefit Hong Kong’s economy and attract investment. Wu also suggested the creation of Bitcoin-based ETFs to activate the value of existing holdings.