{"id":4868,"date":"2024-12-30T12:34:00","date_gmt":"2024-12-30T12:34:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=4868"},"modified":"2024-12-30T12:34:00","modified_gmt":"2024-12-30T12:34:00","slug":"hong-kong-lawmaker-proposes-bitcoin-inclusion-in-fiscal-reserves","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=4868","title":{"rendered":"Hong Kong Lawmaker Proposes Bitcoin Inclusion In Fiscal Reserves"},"content":{"rendered":"
\n

Politician and entrepreneur Wu Jiezhuang\u2014a member of the Hong Kong Legislative Council and the National Committee of the Chinese People\u2019s Political Consultative Conference\u2014has called for the inclusion of Bitcoin in the city\u2019s fiscal reserves. The proposal emerged during an interview published<\/a> by the pro-Beijing newspaper Wen Wei Po, established in Hong Kong on September 9, 1948.<\/p>\n

Lawmaker Suggests Adding Bitcoin To Fiscal Reserves<\/h2>\n

Wu Jiezhuang\u2019s remarks, featured in a special topic piece dated December 30, emphasize that \u201cincluding Bitcoin in the national financial reserves is not a new idea,\u201d highlighting the fact that a number of smaller countries have already adopted BTC as a legal currency. Wu further pointed out: \u201cSome states in the USA<\/a> have also legislated that 10% of their reserves be in Bitcoin, allowing for more diversified asset allocation.\u201d<\/p>\n

He added that if US President-elect Donald Trump<\/a> were to \u201caggressively promote the inclusion of Bitcoin into government strategic reserves,\u201d it would have a global impact, especially on traditional reserve assets. Wu used this context to urge the Hong Kong Special Administrative Region (SAR) government to consider whether to \u201cincorporate digital assets and cryptocurrencies into financial reserves,\u201d including the possibility of using the Exchange Fund for continual BTC purchases over the long term.<\/p>\n

In response to these calls, the SAR Government\u2019s Treasury Bureau confirmed that Hong Kong\u2019s foreign exchange fund invests in a \u201cglobally diversified asset class and markets to spread risk and enhance long-term returns.\u201d While cryptocurrency is not formally designated as a target investment for the foreign exchange fund, the Bureau acknowledged that \u201cexternally hired investment managers also invest in globally diversified asset classes and markets,\u201d allowing for potential\u2014though minimal\u2014cryptocurrency-related investments.<\/p>\n

Regarding financial security, the Bureau reiterated Hong Kong\u2019s stance of regulating the crypto market<\/a> based on the principle of \u201csame business, same risk, same rules.\u201d This approach aims to mitigate risks and ensure that financial security is maintained, while the government continues \u201cto improve the regulatory system and launch measures to promote the development of the local virtual asset market.\u201d<\/p>\n

Wu Jiezhuang expressed concerns about the broader ramifications if the United States were to recognize BTC as a strategic reserve asset. He suggested that such a move could destabilize traditional assets: \u201cIf economic powerhouses actively incorporate Bitcoin into strategic reserves, its value will stabilize, prompting more countries to follow suit and reduce holdings in traditional assets, causing traditional asset prices to fall and shrinking government financial reserves.\u201d<\/p>\n

Wu posited that BTC might eventually replace \u201cprecious metals with low practical utility, including gold and silver,\u201d due to its lower storage and transport costs. While mentioning that Bitcoin itself lacks physical utility, he argued that the cryptocurrency\u2019s ease of transfer and storage gives it an edge in market trade-offs, especially compared to gold\u2019s substantial storage and logistics expenses.<\/p>\n

Wu underscored Bitcoin\u2019s expanding market presence, referencing the fact that 12 Bitcoin- and Ethereum-linked ETFs are currently traded on the Hong Kong Stock Exchange, while the Hong Kong Securities Regulatory Commission has issued 7 trading platform licenses. This growth stands in stark contrast to a decade ago, when only a small cohort believed in Bitcoin\u2019s potential. However, Wu also noted that \u201cprice volatility and a relatively small market value\u201d constitute weaknesses: \u201cWith each Bitcoin valued at $100,000, Bitcoin\u2019s total market value is about $2 trillion, far from the global gold value of about $20 trillion.\u201d<\/p>\n

He further explained that Bitcoin is \u201cnot without risk,\u201d citing both its dramatic price fluctuations and the opaque identities behind wallet addresses. Consequently, Wu advises governments and enterprises to maintain a cautious approach, allocating only a minimal portion of Bitcoin \u201cas fiscal assets\u201d to balance risk and return.<\/p>\n

Notably, already in July this year, another Hong Kong Legislative Council member, Johnny Ng, announced<\/a> plans to assess the inclusion of Bitcoin into the special administrative region\u2019s financial reserves.<\/p>\n

At press time, BTC traded at $93,778.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

Politician and entrepreneur Wu Jiezhuang\u2014a member of the Hong Kong Legislative Council and the National Committee of the Chinese People\u2019s Political Consultative Conference\u2014has called for the inclusion of Bitcoin in the city\u2019s fiscal reserves. The proposal emerged during an interview published by the pro-Beijing newspaper Wen Wei Po, established in Hong Kong on September 9, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-4868","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4868"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4868\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}