Hong Kong Legislator Proposes Exploring Bitcoin for Strategic Financial Reserves

Hong Kong Legislative Council member Johnny Ng has initiated discussions about the potential inclusion of Bitcoin in the region’s strategic financial reserves, marking a significant step in the integration of cryptocurrencies into mainstream finance. This proposal comes in the wake of former U.S. President Donald Trump’s speech at the Bitcoin 2024 conference, where he promised to create a “strategic Bitcoin reserve” if re-elected.

Ng, a self-proclaimed Web3 advocate and chair of the Legislative Committee’s Web3 and Virtual Assets Development Subcommittee, emphasized the growing global acceptance of Bitcoin and its perception as “digital gold.” In a post on social media platform X, he stated, “It is indeed possible to research and consider including Bitcoin in strategic financial reserves, as long as it is compliant.”

The legislator plans to engage with various stakeholders in Hong Kong to discuss the feasibility and potential benefits of incorporating Bitcoin into the region’s financial framework. Ng stressed the importance of thorough research and regulatory compliance to ensure a strategic and secure integration.

This initiative aligns with Hong Kong’s broader efforts to position itself as a leader in digital finance and blockchain technology. The region has recently made significant strides in this direction, including the approval of spot Bitcoin and Ethereum ETFs for trading in April 2024, and the introduction of a comprehensive regulatory framework for stablecoin issuers.

However, the proposal is not without challenges. Some lawmakers have raised concerns about the stringent regulations for crypto exchanges obtaining licenses in Hong Kong, which have reportedly deterred major global exchanges from entering the market.

Ng’s advocacy extends beyond Bitcoin to encompass the broader Web3 ecosystem. He urged the Hong Kong government to accelerate the development of Web3 technologies by attracting “globally competitive talent and capital, public chains and exchanges, enterprises and projects.”