A Hong Kong lawmaker is calling for Bitcoin to be included in national reserves
![A Hong Kong lawmaker is calling for Bitcoin to be included in national reserves 3 A Hong Kong lawmaker is calling for Bitcoin to be included in national reserves](https://cryptify.ws/wp-content/uploads/2024/12/hongkong-bitcoin-reserve-780x470.jpg)
Hong Kong MP Wu Ji urged the city government to consider a merger Bitcoin In its financial reserves, it is a local media outlet I mentioned.
The report showed that Wu suggested that the Hong Kong Special Administrative Region (SAR) explore including cryptocurrencies in its financial reserves and leverage foreign exchange funds to acquire and hold digital assets for the long term.
The legislator highlighted the global repercussions for major economies Bitcoin integration In their reserves. Wu argued that Bitcoin’s limited supply could position it as a competitor to traditional assets while providing protection against inflation.
While acknowledging the volatility of bitcoin, Wu advised governments and companies to allocate only a small percentage of their reserves to the asset. He stressed that strategic adoption can benefit financial systems without exposing them to unnecessary risks.
Furthermore, if “influential” countries adopt Bitcoin, its value will stabilize to the point that it will become more widely accepted globally. He explained that this shift may reduce reliance on traditional reserves such as gold and silver, as Bitcoin’s lower storage and transaction costs represent a practical advantage.
Wu also pointed to Bitcoin’s growing presence in mainstream finance, citing the Hong Kong Stock Exchange ETFs linked to Bitcoin and Ethereum And issuing licenses for cryptocurrency trading platforms.
This discussion is based on a Inquiry from legislator Johnny Ngwhich asked the government to consider the integration of digital assets.
China recognizes Hong Kong’s progress in the field of cryptocurrencies
Meanwhile, China’s central bank acknowledged that Hong Kong had emerged as a state A leader in crypto regulation.
In its 2024 Financial Stability Report, the People’s Bank of China praised Hong Kong’s progress in the management and integration of digital assets.
According to the authorities, Hong Kong has actively explored licensing cryptocurrencies and classified virtual assets as secured and unsecured financial assets. This dual classification system ensures proper supervision and licensing of virtual asset trading platforms, especially security tokens.
Furthermore, institutions involved in virtual asset operations must obtain regulatory licenses before commencing activities. In addition, large financial institutions such as HSBC and Standard Chartered must include crypto asset exchanges in their routine client oversight.
China’s recognition highlights Hong Kong’s significant strides in regulatory developments. This year, Hong Kong was given priority Stablecoin regulation and Crypto exchangeswhich helped consolidate its leadership in the digital assets ecosystem in Asia.
Wu Blockchain first reported story.
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2024-12-30 11:13:00