Johnny Ng, a member of the Hong Kong Legislative Council, has announced his intention to initiate discussions with various stakeholders about the possibility of including bitcoin in the region’s financial reserves. This move comes in response to former U.S. President Donald Trump’s recent speech where he promised to create a “strategic bitcoin reserve” if elected in November.
Advocacy for Bitcoin in Financial Reserves
In a post on X on Sunday, Johnny Ng highlighted the growing global acceptance of bitcoin, referring to it as “digital gold” due to its technological foundations. He believes it is worth considering the inclusion of bitcoin in Hong Kong’s official financial reserves.
“The global acceptance of bitcoin is constantly increasing, and bitcoin is seen by the public as ‘digital gold’ in the context of its technology, so in the future, it is indeed possible to research and consider including bitcoin in strategic financial reserves, as long as it is compliant,” Ng stated.
Response to Trump’s Proposal
Ng’s comments came shortly after Donald Trump’s speech at the Bitcoin 2024 conference in Nashville, where Trump promised to establish a “strategic bitcoin reserve” if he wins the upcoming presidential election. Inspired by this, Ng has pledged to explore the feasibility and potential benefits of incorporating bitcoin into Hong Kong’s financial strategy.
“I will discuss the feasibility and opportunities of including Bitcoin in financial reserves with different stakeholders in Hong Kong, and will report the situation to everyone in a timely manner,” Ng said in his X post.
Hong Kong’s Stance on Cryptocurrency
Hong Kong has been notably more welcoming to cryptocurrency firms compared to mainland China, which has imposed strict regulations on cryptocurrency trading and mining. In June 2023, Hong Kong launched a crypto licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services.
Challenges and Concerns
Despite Hong Kong’s favorable stance towards cryptocurrency, there have been concerns about the stringent regulations required for obtaining a crypto exchange license. Duncan Chiu, another Hong Kong lawmaker, criticized the “excessively stringent” rules, arguing that they have deterred major global exchanges from entering the Hong Kong market. Exchanges such as OKX, Gate.io, and HTX have withdrawn their license applications due to these stringent requirements.
Johnny Ng’s advocacy for including bitcoin in Hong Kong’s financial reserves marks a significant step in the region’s approach to cryptocurrency. By exploring this possibility, Hong Kong could position itself as a forward-thinking leader in the adoption of digital assets. As discussions with stakeholders progress, the outcome could have substantial implications for the future of cryptocurrency in Hong Kong and potentially influence other regions to consider similar measures.
