As Donald Trump is expected to take office as US President, his promise of a national Bitcoin reserve continues to set an example for the entire world.
At this point, while the BTC reserve discussion has come to the fore in many countries, Hong Kong, which is on its way to becoming a cryptocurrency center, has also joined these discussions.
A Hong Kong lawmaker has proposed including Bitcoin in Hong Kong's financial reserves, local news agency Wenweipo reported.
Accordingly, Hong Kong Legislative Council member Johnny Ng put forward a proposal that included utilizing the “one country, two systems” framework to include Bitcoin in Hong Kong's reserves.
Stating that holding a significant amount of Bitcoin is now mandatory to have a significant economy, the lawmaker suggested that the Exchange Fund buy Bitcoin and hold it for a long time in order to encourage the development of the cryptocurrency sector in Hong Kong, attract more funds and generate more transaction stamp duty revenue.
Noting that the current fiscal deficit in Hong Kong has exceeded 100 billion yuan ($13.7 billion), MP Ng said that holding small amounts of Bitcoin will not be a solution to the fiscal deficit, but if a significant amount of BTC is purchased, it can be useful to reduce the fiscal deficit.
“Hong Kong should explore ways to incorporate Bitcoin into its foreign exchange reserves by taking advantage of the ‘one country, two systems’ principle.
Buying Bitcoin can help stabilize the financial system. At this point, the Hong Kong government can use Bitcoin as a way to strengthen the financial system.
Considering that the current fiscal deficit exceeds 100 billion yuan (about 20 trillion won), holding only a small amount of Bitcoin will not significantly help reduce the deficit.”
*This is not investment advice.
