Hong Kong Legislative Council member Wu Jiezhuang has proposed leveraging the “one country, two systems” framework to incorporate Bitcoin into the region’s national reserves, aiming to enhance financial stability.
Wu suggests that Hong Kong could study the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs) and consider including Bitcoin in its financial reserves. He points to smaller nations like El Salvador and Bhutan, which have integrated Bitcoin into their strategic reserves, as well as certain U.S. states. Wu also notes that U.S. President-elect Donald Trump’s proposal to make Bitcoin a strategic reserve asset could significantly impact traditional markets.
By holding Bitcoin as part of its national reserves, Hong Kong could mitigate disruptions caused by broader adoption in traditional markets, offering the region a first-mover advantage. Wu emphasizes that if major economic powers include Bitcoin in their strategic reserves, its value will stabilize, prompting other countries to follow suit and potentially reducing their holdings of traditional assets.
This proposal aligns with Hong Kong’s ongoing efforts to position itself as a leading hub for digital assets and financial innovation. The Financial Services and the Treasury Bureau plans to formulate crypto regulations based on the “same business, same risks, same rules” philosophy, ensuring a balanced approach to innovation and security.
