Hong Kong’s lawmakers have proposed incorporating Bitcoin into the national fiscal reserves. This initiative is designed to bolster the cryptocurrency sector, attract investment, talent, and increase tax revenue from digital asset transactions. By leveraging the ‘One Country, Two Systems’ framework, Hong Kong aims to explore Bitcoin as a reserve asset.
Web3 committee chair, Wu Jiezhong, points to smaller nations like El Salvador, which have already adopted Bitcoin into their national reserves. This move highlights opportunities for Hong Kong to maintain its position as Asia’s leading cryptocurrency hub, further optimizing China’s strategic Bitcoin holdings of over 194,000 BTC.
Although Bitcoin’s market cap of about 2 trillion USD is dwarfed by gold’s 20 trillion USD, Wu emphasizes Bitcoin’s potential as a hedge against inflation. Despite concerns over its volatility and market limitations, its capped supply and lower costs than precious metals mark it as a promising value asset.