The post Bitcoin as a Fiscal Asset: Hong Kong Lawmaker Advocates for Bitcoin Reserves for Economic Edge appeared on BitcoinEthereumNews.com.

A Hong Kong lawmaker has proposed incorporating Bitcoin (BTC) into the region’s national reserves, aiming to enhance financial security and position Hong Kong as a global crypto hub. Proposal for Bitcoin as a Reserve Asset Wu Jiexhuang, a member of Hong Kong’s Legislative Council, has called for the inclusion of Bitcoin in the city’s fiscal reserves. Speaking to the state-owned newspaper Wen Wei Po, Jiexhuang highlighted the potential benefits of leveraging China’s “one country, two systems” framework to adopt Bitcoin as a strategic reserve asset. He argued that doing so could promote financial security, boost local crypto industry development, and attract talent and investment. Jiexhuang suggested that Hong Kong could study the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs) as part of its exploration of Bitcoin’s viability as a reserve asset. He added that such a move could also increase transaction stamp tax revenue. Global Precedents and Strategic Advantages Jiexhuang pointed to smaller nations like El Salvador and Bhutan, which have integrated Bitcoin into their strategic reserves, as examples. He also noted that certain U.S. states are pursuing similar strategies. Highlighting U.S. President Donald Trump’s recent proposal to make Bitcoin a strategic reserve asset, Jiexhuang suggested Hong Kong could gain a first-mover advantage by following suit.  Jiexhuang said,  “If major economic powers take the initiative to include Bitcoin in strategic reserves, the value of Bitcoin will be more stable, causing more and more other countries to follow suit and reduce their holdings of traditional assets. This will result in the fall of the price of traditional assets and will shrink the government’s fiscal reserves holding traditional assets.”  Cautious Implementation Recommended While advocating for Bitcoin’s inclusion, Jiexhuang acknowledged the risks associated with the asset. He advised Hong Kong authorities to allocate only a small percentage of the national reserves…

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Filed under: News - @ January 1, 2025 4:09 am