In Hong Kong, a lawmaker is proposing adding Bitcoin (BTC) to state reserves. This would be a considerable step forward towards cryptocurrency. But a step that is being considered by more and more countries around the world.
Bitcoin in Hong Kong reserves?
“One country, two systems » : this is the formula that governs relations between Hong Kong and China. And it is on this Hong Kong exception that a pro-Bitcoin legislator intends to bank.
Wu Jiexhuang, a member of the Hong Kong Legislative Council, believes that it is time to gradually open up to Bitcoin. First of all by integrating cryptocurrency into spot ETFs, as was done in the United States.
Then, the legislator believes it would be appropriate to build up state reserves in Bitcoin. Wu Jiexhuang points out that this is already the case in El Salvador, which has made BTC an official currency. And that this may soon be the case in the United States, if we are to believe the words of President-elect Donald Trump.
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The advantages of Bitcoin reserves
Here, as elsewhere, Bitcoin could help mitigate risks and diversify state currency reservesaccording to the legislator. It could also attract new investors and new talents. Wu Jiexhuang also notes a probable ripple effect:
“If major economic forces take the initiative to include Bitcoin in strategic reserves, the value of Bitcoin will be more stable, leading more and more countries to reduce their stocks of traditional assets.»
Mention of Bitcoin reserves has been common in recent months among various global legislators. But they have a special taste in Hong Kong. The special administrative region is in fact already considered an emerging haven for cryptocurrencies. Its decisions are also widely interpreted as a way for China to test certain openings to the sector.
🌐 To go further – China, the next catalyst for the rise of Bitcoin?
Behind Hong Kong, there is in fact the increasingly obvious curiosity of China. At this point, the country reportedly holds 190,000 BTC from various seizures in the context of legal matters. This untapped treasure represents nearly 18 billion dollars at current prices. It should therefore not be neglected and could count in the geopolitics of the coming years.
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Source: Wen Wei Po
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Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency industry, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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