Hong Kong lawmaker Wu Jiexhuang suggested that the region should start adding Bitcoin to its national reserves to increase financial security.
According to local newspaper Wen Wei Po, Wu said that as a starting point, Hong Kong regulators should study the impact of U.S.-issued Bitcoin exchange-traded funds on the market before deciding to include Bitcoin in the national reserve.
He argued that Hong Kong authorities could exploit China’s “one country, two systems” policy to include Bitcoin (BTC) in its national financial security reserve. The newspaper noted that China currently has the second largest Bitcoin reserve worth 190,000 BTC from illegal trade seizures.
“If major economic powers take the initiative to include Bitcoin in strategic reserves, the value of Bitcoin will be more stable, which will lead to more countries following suit and reducing their traditional asset holdings,” Wu said.
The council member and chair of the Web3 virtual asset development subcommittee did not recommend sticking with “small currencies.” Instead, he specifically recommended Bitcoin due to its high trading volume in the market, making it a more sought-after asset compared to more traditional commodities such as gold and silver.
He cited El Salvador and Bhutan as examples of regions that have successfully added Bitcoin to their national reserves, as well as several US states.
In his interview with the news outlet, Wu noted that cryptocurrencies are already integrated into Hong Kong’s financial institutions. For example, he mentioned that there are already up to 12 Bitcoin and
