Hong Kong politician Wu Jiezhuang proposes including Bitcoin ( BTC ) in the city’s foreign exchange reserves, suggesting that the Exchange Fund acquire and hold Bitcoin for the long term. He also proposed including Bitcoin in the city’s currency reserves and using the Exchange Fund to purchase Bitcoin. This strategy aims to expand the reach of the Bitcoin business in Hong Kong to attract financial resources and talent from around the world. This will also increase stamp duty revenue on transactions.
Hong Kong’s Bitcoin
A member of Hong Kong’s Legislative Council and chairman of the Web3 Virtual Asset Development Subcommittee spoke about the potential benefits of Bitcoin in an increasingly global context. A few weeks ago, he mentioned how the US strategically adopted Bitcoin under Trump’s presidency, causing its market value to surge . This would allow Hong Kong to use its unique “ one country, two systems ” method to improve financial security.He said adding Bitcoin to government funds could make traditional investments less safe.
Bitcoin for Inflation Defense
Wu reports that many US states and countries are conserving Bitcoin to combat inflation and money creation. Current economic conditions prompted this action. This is how these nations acted. They’re taking this measure to avoid these repercussions. Specifically, it would consider both of them.
These countries and governments use a proactive approach to avoid issues. He thought Hong Kong could develop a more stable financial system with this scheme. This would diversify its reserves and turn Bitcoin into a long-term investment.
Bitcoin in Government Reserves
While Wu acknowledged Bitcoin’s volatility and cybersecurity concerns, he advocated for the cautious inclusion of Bitcoin in government reserves. He also believed that Bitcoin is a cryptocurrency. He stressed that Bitcoin’s growing popularity, the development of its derivatives market, and its increasing integration into traditional finance could significantly benefit Hong Kong’s economy by attracting investment and talent. He mentions the expansion of the Bitcoin market.
Summary
Wu Jiezhuang’s plan to help Hong Kong cryptocurrency enterprises centers on the government’s Bitcoin reserve strategy. He might boost his reserves. Price volatility and internet security issues are dangers. These gains could benefit the city long-term. He suggests adding Bitcoin to the Chinese city’s money supply.
Hong Kong can benefit from Bitcoin’s global rise by storing government reserves in Bitcoin. It could boost financial security and investment. Hong Kong can gain from this plan. Wu emphasizes the long-term economic benefits of digital assets in the city’s monetary policy.
