A Hong Kong legislator, Wu Jiexhuang, has known as for the
metropolis to discover the potential of together with Bitcoin in its nationwide reserve
beneath the “one nation, two programs” coverage.
Wu, a member of Hong Kong’s Legislative Council, instructed
that the area research the market impression of U.S.-based Bitcoin exchange-traded
funds (ETFs). He pointed to nations like El Salvador and Bhutan, which have
built-in Bitcoin into their reserves, in addition to some US states.
Hong Kong Considers Bitcoin for Reserves
Wu emphasised that Bitcoin’s inclusion in nationwide reserves
may enhance Hong Kong’s monetary stability and entice expertise and funding.
He believes it may supply a first-mover benefit in managing market
fluctuations.
The Hong Kong Monetary Providers and the Treasury Bureau are
anticipated to develop crypto laws with the “similar enterprise, similar dangers, similar
guidelines” method.
BREAKING: 🇭🇰 Hong Kong simply accepted the primary batch of spot #Bitcoin ETFs. pic.twitter.com/TbjXPgZyH8
— Bitcoin Journal (@BitcoinMagazine) April 15, 2024
China Holds 190K Bitcoin Reserves
Wu additionally referenced U.S. President-elect Donald Trump’s
proposal to make Bitcoin a strategic reserve asset, which he believes may
impression conventional markets. He famous that if main economies undertake Bitcoin in
their reserves, it may stabilize its worth and cut back the reliance on
conventional belongings.
The report additionally talked about that China holds 190,000 Bitcoin,
making it the second-largest holder of the cryptocurrency, following the United
States. In mid-2024, one other Hong Kong legislator, Johnny Ng, introduced plans
to evaluate Bitcoin’s potential function in Hong Kong’s monetary reserves.
Bitcoin Rally Boosts El Salvador
In the meantime, El
Salvador, the primary nation to undertake Bitcoin as authorized tender, has seen its
Bitcoin holdings rise in worth, not too long ago surpassing $600 million, as reported
by Finance Magnates.
This follows a major rally in Bitcoin’s value, which
reached over $106,000 after US political occasions, together with Donald Trump’s
election win and the nomination of crypto-friendly SEC chair candidate Paul
Atkins.
The nation’s Bitcoin experiment, initially met with skepticism resulting from
Bitcoin’s volatility, has introduced notable beneficial properties since its controversial 2021
resolution. President Nayib Bukele highlighted the monetary enhance, citing a
reported $350 million in beneficial properties from the nationwide Bitcoin portfolio.
This text was written by Tareq Sikder at www.financemagnates.com.