The Hong Kong legislature has proposed including BTC in the region’s fiscal reserves

The Hong Kong legislature has proposed including BTC in the region's fiscal reserves



Hong Kong may soon join the list of countries using Bitcoin (BTC) as a store of value and hedge against inflation.

According to local media reports, Hong Kong Legislative Council member Wen Wei Po has proposed including BTC in the region's fiscal reserves to enhance financial security. Hong Kong may use foreign exchange funds to acquire and hold BTC in the long term, he said.

BTC as a reserve asset in Hong Kong

Jiexhuang told Wen Wei Po that increasing BTC as a fiscal reserve in Hong Kong will encourage the development of the domestic crypto industry, attract talent and investment, and increase transaction stamp tax revenue.

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China's one-country, two-system policy, including BTC in Hong Kong reserves, gives the region a first-mover advantage and helps authorities reduce the economic disruption caused by widespread use of the asset in traditional markets.

“If major economic powers take the initiative to include bitcoin in strategic reserves, the price of bitcoin will become more stable, which will lead more and more other countries to follow suit and reduce their traditional assets. This will lead to a fall in the value of traditional assets and reduce the government's fiscal reserves that hold traditional assets.”

While the politician mentioned the benefits of buying and holding BTC, he also mentioned the risks associated with investing in the asset. He recommended that Hong Kong authorities allocate a small percentage of the national treasury to the asset, starting with bitcoin exchange-traded funds (ETFs). He urged the government to study the impact of the US Bitcoin ETF market on the country's financial industry and take action.

In particular, Hong Kong already has a place Bitcoin ETF market; However, the flow pales in comparison to US spot Bitcoin ETFs.

Following Trump's steps

Jiexhuang is not the first lawmaker to propose that BTC be included in the Hong Kong stock exchange. Another member of the Legislative Council, Johnny Ng, did the same in July 2024. Ng's proposal followed US President Donald Trump's pledge to create a national bitcoin reserve at a bitcoin conference in Nashville earlier this year.

Both politicians believe that Trump's proposal to create a strategic bitcoin reserve for the United States will have a major impact on traditional markets and that Hong Kong could emerge as a financial center promoting technological developments.

Meanwhile, lawmakers in Germany are proposing to make BTC the country's reserve asset.

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