Hong Kong legislator Wu Jiexhuang has proposed adding Bitcoin to the region’s national reserves in a bid to enhance financial stability. Wu, a member of Hong Kong’s Legislative Council, suggests leveraging the “one country, two systems” policy to take this progressive step. He pointed to smaller nations such as El Salvador and Bhutan, which have already incorporated Bitcoin into their strategic reserves. According to Cointelegraph, Wu believes adopting Bitcoin could strengthen Hong Kong’s financial security and attract investment, especially as Bitcoin’s global influence continues to rise.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Bitcoin Could Serve as a Hedge against Market Instability
Adding Bitcoin to Hong Kong’s reserves could help protect the region from disruptions in traditional markets. The growing popularity of U.S.-based Bitcoin ETFs could pave the way for larger economic powers to adopt Bitcoin as a strategic asset, stabilizing its value. With China already holding 190,000 Bitcoin, Hong Kong could secure a first-mover advantage in incorporating digital currency into its financial strategy. Wen Wei Po reports that Hong Kong’s financial regulators are also exploring crypto regulations to balance risk and opportunity.
At the time of writing, Bitcoin is sitting at $93,807.02.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
