The special administrative region of China, Hong Kong, has shown support for crypto and bitcoin (BTC) in many ways. In a recent move, its government has proposed adopting a bitcoin reserve in the coming year to help boost the country’s acceptance and development.
Before the proposal, the People’s Bank of China released its 2024 financial report, noting that Hong Kong has solidified its position as Asia’s leading crypto region by welcoming many crypto exchanges and approving spot Bitcoin exchange-traded funds (ETF).
Hong Kong Legislators Goes Pro-crypto
Although over 50 countries worldwide have banned cryptocurrencies, Hong Kong’s lawmaker Wu Jiezhuang has urged the state’s government to consider including Bitcoin in its sovereign wealth funds to support its policies and stabilize its economy’s fiscal reserve. He added that the region should utilize foreign exchange funds to acquire and hold cryptocurrencies in the long term.
Jiezhuang noted that many countries had taken the same step.
“Some states have enacted legislation requiring 10% of their reserves to be in Bitcoin, making asset allocation more diversified,” he said.
These include Central American El Salvador, which has led to the national adoption of Bitcoin since 2021. Earlier this month, the country spent $1 million to boost its reserve and has not stopped buying at least 1 BTC daily. It holds approximately 6,000 bitcoins in its storehouse.
Governmental Bitcoin Adoption Grows
Hong Kong’s Jiezhuang also noted that the United States, which has the world’s largest economy, is about to adopt a strategic bitcoin reserve. If successful, this will significantly affect the global financial market, especially reserve assets.
America’s incoming president, Donald Trump, has promised that, under his administration, the U.S. will acquire at least 200,000 bitcoins each year to establish a strategic reserve. He also plans to make crypto transactions more acceptable for Americans by taking in a crypto-friendly chair to oversee the country’s financial watchdog, the Securities and Exchanges Commission (SEC).
Meanwhile, the American-based business intelligence firm MicroStrategy is the first and largest institutional Bitcoin holder. Concluding its seven-week purchase streak, it holds about 444,262 BTC.
