Key Takeaways
- Hong Kong lawmaker Wu Jie proposes adding Bitcoin to fiscal reserves to boost economic resilience and protect against inflation.
- Wu highlights Bitcoin’s potential as a competitive asset due to its limited supply, lower storage costs, and inflation-resistant properties.
- China’s central bank acknowledges Hong Kong’s leadership in Bitcoin regulation, including licensing frameworks for exchanges and stablecoins.
Hong Kong Lawmaker Proposes Bitcoin Integration in Fiscal Reserves
Hong Kong lawmaker Wu Jie has urged the government to include Bitcoin in its fiscal reserves to strengthen economic resilience.
Wu suggested leveraging foreign exchange funds to acquire and hold Bitcoin for long-term stability and growth.
Wu emphasized that Bitcoin’s limited supply could position it as a competitor to traditional assets while protecting against inflation.
He recommended allocating a small percentage of reserves to Bitcoin to minimize volatility risks and optimize financial systems.
Potential Benefits of Bitcoin as a Reserve Asset
Wu highlighted that Bitcoin’s lower storage and transaction costs offer practical advantages over traditional reserves like gold and silver.
He argued that widespread adoption by influential countries could stabilize Bitcoin’s value and drive global acceptance.
Wu pointed to Bitcoin-linked ETFs listed on the Hong Kong Stock Exchange as evidence of growing mainstream integration.
China Recognizes Hong Kong’s Leadership in Bitcoin and Crypto Regulation
China’s central bank praised Hong Kong’s progress in regulating Bitcoin and crypto in its 2024 Financial Stability Report.
The report acknowledged Hong Kong’s dual classification system, ensuring proper oversight and licensing for trading platforms.
Financial institutions like HSBC and Standard Chartered are required to monitor Bitcoin and crypto exchanges as part of routine oversight.
