Hong Kong lawmaker Wu Jie has called on the government to consider adding Bitcoin to its fiscal reserves, suggesting a strategic acquisition of cryptocurrencies using foreign exchange funds for long-term holding. Wu highlighted the potential for Bitcoin to compete with traditional assets, noting its inflation protection due to its limited supply.
Acknowledging Bitcoin’s volatility, Wu recommended that only a small portion of reserves be allocated to digital assets, to balance potential benefits against risks. He projected that the adoption of Bitcoin by influential nations could stabilize its value and encourage wider acceptance, potentially diminishing reliance on conventional reserves like gold and silver.
In related developments, China’s central bank recognized Hong Kong’s leadership in cryptocurrency regulation, praising its advancements in a recent Financial Stability Report. The city-state has been proactive in regulating digital assets, implementing licensing systems and integrating them into mainstream financial oversight, further establishing its role as a leader in the Asian digital asset ecosystem.
