A Hong Kong legislator, Wu Jiexhuang, has called for the
city to explore the potential of including Bitcoin in its national reserve
under the “one country, two systems” policy.
Wu, a member of Hong Kong’s Legislative Council, suggested
that the region study the market impact of U.S.-based Bitcoin exchange-traded
funds (ETFs). He pointed to countries like El Salvador and Bhutan, which have
integrated Bitcoin into their reserves, as well as some US states.
Hong Kong Considers Bitcoin for Reserves
Wu emphasized that Bitcoin’s inclusion in national reserves
could boost Hong Kong’s financial stability and attract talent and investment.
He believes it could offer a first-mover advantage in managing market
fluctuations.
The Hong Kong Financial Services and the Treasury Bureau is
expected to develop crypto regulations with a “same business, same risks, same
rules” approach.
BREAKING: 🇭🇰 Hong Kong just approved the first batch of spot #Bitcoin ETFs. pic.twitter.com/TbjXPgZyH8
— Bitcoin Magazine (@BitcoinMagazine) April 15, 2024
China Holds 190K Bitcoin Reserves
Wu also referenced U.S. President-elect Donald Trump’s
proposal to make Bitcoin a strategic reserve asset, which he believes could
impact traditional markets. He noted that if major economies adopt Bitcoin in
their reserves, it could stabilize its value and reduce the reliance on
traditional assets.
The report also mentioned that China holds 190,000 Bitcoin,
making it the second-largest holder of the cryptocurrency, following the United
States. In mid-2024, another Hong Kong legislator, Johnny Ng, announced plans
to assess Bitcoin’s potential role in Hong Kong’s financial reserves.
Bitcoin Rally Boosts El Salvador
Meanwhile, El
Salvador, the first country to adopt Bitcoin as legal tender, has seen its
Bitcoin holdings rise in value, recently surpassing $600 million, as reported
by Finance Magnates.
This follows a significant rally in Bitcoin’s price, which
reached over $106,000 after US political events, including Donald Trump’s
election win and the nomination of crypto-friendly SEC chair candidate Paul
Atkins.
The country’s Bitcoin experiment, initially met with skepticism due to
Bitcoin’s volatility, has brought notable gains since its controversial 2021
decision. President Nayib Bukele highlighted the financial boost, citing a
reported $350 million in gains from the national Bitcoin portfolio.
This article was written by Tareq Sikder at www.financemagnates.com.
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