A Hong Kong lawmaker has recently proposed the incorporation of Bitcoin into the fiscal reserves of the city, suggesting that the government consider using the exchange fund to invest in crypto.
This proposal is in line with a global trend in which different jurisdictions are exploring digital assets as part of their financial strategies.
Legislator, Wu Jiezhuang has advocated for this initiative, stressing that integration Bitcoin could increase financial security amid evolving global economic conditions.
The proposal mirrors similar actions taken by other nations, most notably in response to former US President Donald Trump's suggestion to create a national Bitcoin reserve in the event that he is reelected.
Wu highlighted that leveraging Hong Kong's unique "One Country, Two Systems" framework could facilitate this integration into the Exchange Fund.
While the Hong Kong Monetary Authority (HKMA) has indicated that crypto are not currently primary investment focus for the exchange fund, it allows for minimal exposure to crypto through diversified portfolios managed by external investment managers.
This proposal shows Hong Kong's ongoing efforts to position itself as a crypto friendly hub having already launched various crypto linked-ETFs and implemented new regulations to increase oversight in the digital asset space.
The action could potentially align with the growing interest in crypto by global financial institutions, who are looking to diversify their portfolios and adjust to changing market dynamics.
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