As Hong Kong seeks to become the epicentre of crypto, policymakers plan to introduce Bitcoin as a strategic financial reserve.
In a recent report, the Hong Kong Legislative Council Johnny Ng announced plans to introduce Bitcoin as a financial reserve. The official will engage with key stakeholders to assess the viability of accepting Bitcoin as a financial reserve.
Hong Kong Set to Launch Bitcoin Fiscal Reserve
Ng updated the X community that as long as the Bitcoin issuance conforms with the Hong Kong regulations, it will be beneficial to accept BTC as a strategic financial reserve. Citing the growing demand for BTC, the executive noted that Bitcoin’s global acceptance has increased.
Ng observed that Bitcoin is considered digital gold in emerging economies. Also, the official confirmed that Bitcoin has demonstrated massive potential to hedge the biting inflation.
The executive outlined the benefits of including Bitcoin as Hong Kong’s strategic fiscal reserve. He projects that Bitcoin will promote financial inclusion and attract economic prosperity to the country.
Citing the speech by Donald Trump at the Bitcoin 2024 conference, Ng noted that Bitcoin was gaining traction. Based on its limited supply, BTC has emerged as a valuable asset.
At the event, Trump pledged to create a Bitcoin strategic national reserve and restrict the government from selling seized BTC. The Republican presidential candidate vowed to make the US Bitcoin superpower once in retake the White House.
Hong Kong Seeks to Improve Its Crypto Attractiveness
The politician feared that the failure of the US to embrace crypto would allow its top rival, China, to do it. His pro-crypto spirit encourages the Americans to support his re-election bid.
In the past few weeks, crypto bigwigs, including the Winklevoss brothers and the co-founder of Kraken Jesse Powell, sent Bitcoin donations to support Trump.
Other crypto investors have raised multimillion dollars to support pro-crypto candidates vying for various seats in the US 2024 election.
The event was graced by over 3000 people hoping Trump would end Biden’s anti-crypto move that stifled the development of the digital sector. In a subsequent report, Wyoming senator Cynthia Lummis unveiled a new bill that demands the Federal Reserve to hold Bitcoin as a strategic financial reserve.
The Senator outlined how the new bill would reduce the US national debt. Shortly after Lummis unveiled her bill, the US Presidential candidate Robert F. Kennedy, Jr urged the government to invest in buying BTC.
Kennedy advised the US government to increase its BTC holding to compete with its gold reserve. The speakers at the event challenged Ng to push for the adoption of friendly regulations that stimulate growth in the Hong Kong Web3 industry.
Ng urged the Hong Kong government to improve the country’s global competitiveness through Web3 projects. He projects that Hong Kong will become a crypto capital, attracting competitive talents, foreign investment and a public chain.
Importance of Web3 Technology
Ng has been profiled as a Web3 advocate heading the Hong Kong legislative committee in policing crypto assets. In his role, Ng encouraged the government to invest in Web3 development to unlock more opportunities in the Internet and the financial sector.
He described Web3 as the next Internet generation that will foster open markets. The executive believes that Web3 development will support Hong Kong’s digital economy.
He urged the government to focus on tech development to create an environment where Web3 will thrive. Besides Web3 development, Hong Kong has become a home to foreign crypto investments.
In April, the financial regulators greenlighted the spot Bitcoin and Ether exchange-traded funds (ETFs), attracting hundreds of investors to Hong Kong. The approval of Bitcoin and Ether ETF in Hong Kong challenged the US to review the applications that have been pending for months.
As the number of crypto investors in Hong Kong increased, the regulators introduced a new licensing regime for virtual assets service providers (VASPs).
Under the new licensing requirement, regulated VASPS will be allowed to facilitate the buying and selling crypto assets to retail customers. The new licensing requirement aimed at combating financial crime and address unfair business practices in the country.
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