Wu Jiexhuang, a member of Hong Kong’s legislative council, has suggested adding Bitcoin (BTC) to the region’s fiscal reserves to improve financial security and boost the local cryptocurrency industry.
He suggests using some of Hong Kong‘s foreign exchange funds to buy BTC for long-term holding. This could help strengthen the city’s position as a global financial center and bring in extra revenue from transaction stamp taxes.
Jiexhuang thinks that if big economies begin to include Bitcoin in their reserves, it might help stabilize BTC’s value and encourage more global use, possibly leading to less investment in traditional assets.
He recognized the risks of investing in Bitcoin and suggested being careful, beginning with a small investment in Bitcoin exchange-traded funds (ETFs). He stressed the importance of looking at how the U.S. spot Bitcoin ETF market affects finance before investing a lot of money.
This proposal is similar to one made by legislator Johnny Ng, who pointed out the possible advantages of adopting the U.S. model, where former President Donald Trump suggested a national Bitcoin reserve.
Supporters say that using BTC as a reserve asset could bring in global talent and strengthen Hong Kong’s role in financial innovation. Germany is looking into adopting BTC, showing a growing global interest in using cryptocurrencies in financial plans.
