Hong Kong lawmaker Wu Ji has urged the city's government to consider reunification Bitcoin To his financial reserves, a local media It has been reported.
The report showed that Wu proposed that the Hong Kong Special Administrative Region (SAR) consider including cryptocurrencies in its financial reserves and use the currency funds to purchase and hold digital assets for the long term.
The legislator highlighted the global implications of major economies Bitcoin combination to their reserves. Wu argued that Bitcoin's limited supply may position it as a competitor to traditional assets while also providing protection against inflation.
While acknowledging bitcoin's volatility, Wu recommended that governments and businesses allocate only a small percentage of their reserves to the asset. He stressed that adopting a strategy can benefit financial systems without exposing them to unnecessary risks.
Additionally, if “influential” countries accept Bitcoin, its value will stabilize to the point that it will lead to wider global adoption. He explained that the change may reduce reliance on traditional reserves such as gold and silver, as bitcoin's lower transaction and storage costs are a practical advantage.
Wu also cited the Hong Kong stock market as pointing to Bitcoin's growing presence in the financial mainstream ETFs related to Bitcoin and Ethereum and licensing of crypto trading platforms.
This discussion is based on a Query from the legislator Johnny Ngwhich asked the government to consider integrating digital assets.
China recognizes the progress of Hong Kong's digital currencies
Meanwhile, China's central bank has acknowledged that Hong Kong as a Leader in cryptocurrency regulation
In its 2024 Financial Stability Report, the People's Bank of China praised Hong Kong's progress in managing and integrating digital assets.
According to officials, Hong Kong has actively reviewed crypto licenses and classified virtual assets under securities and non-securities financial assets. This dual classification system ensures proper supervision and authorization for virtual asset trading platforms, especially for security tokens.
In addition, institutions involved in virtual asset operations must obtain regulatory approvals before commencing operations. Additionally, major financial institutions such as HSBC and Standard Chartered should include crypto asset exchanges in their regular customer due diligence processes.
China's recognition highlights important steps Hong Kong has taken in regulatory developments. This year, Hong Kong was given priority Setting up stablecoins and Crypto exchangeswhich has helped establish its leadership in Asia's digital asset ecosystem.
Blockchain Wu first reported story.
