Hong Kong Legislator Advocates For Bitcoin In Financial Reserves Too

Johnny Ng, a member of Hong Kong’s Legislative Council, urged the city-state to explore the possibility of including Bitcoin in its strategic financial reserves.

On 28 July 2024, Ng posted on social media about the growing global acceptance of Bitcoin and its perception as “digital gold.” He stated that as long as it complies with regulations, incorporating Bitcoin into financial reserves is “worth considering.”

The lawmaker insists that he will discuss the feasibility and benefits of this proposal with various stakeholders in Hong Kong. He assured the public that he would provide timely updates on the progress of these discussions.

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Hong Kong Follows US Lead   

The announcement from Hong Kong lawmaker came in the wake of former US President Donald Trump’s speech at the Bitcoin 2024 Conference, where he pledged to create a “strategic Bitcoin stockpile” for the US if elected.

US Senator Cynthia Lummis also shared a similar proposal. She suggested establishing a decentralized network of secure Bitcoin vaults managed by the Department of Treasury, aiming to acquire 1 million BTC.

Trump and Lummis’s comments echoed a similar promise by independent Presidential candidate Robert F Kennedy Jr, who proposed that the federal government purchase Bitcoin to match the nation’s gold reserves.

Ng, who chairs the Hong Kong Legislative Committee’s Web3 and Virtual Assets Development Subcommittee, is a vocal advocate for Web3 technologies.

He emphasized the need for Hong Kong to accelerate the development of its Web3 ecosystem, by attracting global talent and capital, public chains and exchanges, enterprises and projects.

Former U.S. President Trump recently gave a speech at the U.S. Bitcoin Summit, sharing his views on Bitcoin. Bitcoin and Web3 have already gained the attention and development of countries around the world, and Hong Kong is also actively becoming a hub to promote technological… pic.twitter.com/e1UFCb6g1q

— Johnny Ng 吴杰庄 (@Johnny_nkc) July 28, 2024

Hong Kong already made significant strides in the cryptocurrency space. In April, the Securities and Futures Commission (SFC) approved spot Bitcoin and Ethereum ETFs for trading, ahead of similar moves in the US.

Earlier this month, the Hong Kong Monetary Authority proposed a regulatory framework for fiat-referenced stablecoin (FRS) issuers. This followed a proposal in February by the General Chamber of Commerce for issuing a stablecoin backed by the Chinese yuan.

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Hong Kong Government Explores DeFi and Metaverse

Last month, the Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance, released two reports that explored the implications of decentralized finance (DeFi) and the metaverse on the financial sector.

One of the reports pointed out the significant growth of DeFi, which has seen its market capitalization surge from $6 billion in 2021 to over $80 billion in 2023. It revealed that more than 70% of crypto businesses participating in the research have yet to explore the potential of DeFi.

Regarding the metaverse, the study indicated moderate engagement from local financial institutions despite a high interest in the technology. This sentiment was reflected in a survey of Hong Kong respondents, where over 51% expressed skepticism about the metaverse’s future potential.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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