4 months ago
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Hong Kong is already making strides to restore its status as a technological hub in the Asia-Pacific region.
Johnny Ng, a prominent member of the Hong Kong Legislative Council and a well-known Web 3.0 advocate, has voiced his support for incorporating Bitcoin (BTC) into the country’s financial reserves, which stood at around $417.1 billion as of May 2024.
He believes that adding Bitcoin to the national reserves could significantly benefit Hong Kong’s economic framework, provided the right regulatory conditions are in place. The country’s foreign reserves dropped from $417.1 billion in May to $416.3 billion in June 2024, marking the lowest level since October 2023.
Bitcoin as a Financial Asset
In a recent post on X, Ng shared his views on Bitcoin, suggesting that the country’s economy could see substantial improvement with the addition of Bitcoin to its national reserves.
His inspiration came from Donald Trump’s keynote speech at the Bitcoin Conference in Nashville. The US Republican Party nominee stated that he would ensure the inclusion of Bitcoin in the American reserves if elected president.
The Hong Kong lawmaker echoed Trump’s sentiments, stating that “Bitcoin is worth considering as a financial reserve” due to its rising prominence and global confidence. He emphasized that Bitcoin is often recognized as “digital gold” because of its perceived value and potential as a hedge against inflation.
Engaging Stakeholders and Promoting Web 3.0 Development
He also expressed his openness to discussing the possibility of including Bitcoin in Hong Kong’s financial reserves with various stakeholders in the country. He is committed to engaging in dialogue and keeping the public informed about these discussions.
In addition to his proposal for Bitcoin reserves, Ng urged Hong Kong lawmakers to support the development of the local Web 3.0 industry. He called for efforts to attract more cryptocurrency businesses and talent to the city, aiming to establish Hong Kong as a leading hub for digital finance and innovation.
Hong Kong’s Technological Ambitions
Hong Kong is already making strides to restore its status as a technological hub in the Asia-Pacific region. Last year, Hong Kong’s Securities and Futures Commission (SFC) introduced a licensing regime to attract foreign crypto companies to its bustling market.
Under this regime, companies like HasKey Exchange and OSL, the digital asset division of the OSL Group, received operational licenses to offer retail traders the opportunity to buy and sell Bitcoin and other cryptocurrencies.
Following the successful implementation of this law in June 2023, the country’s financial authorities have now turned their attention to stablecoins, a type of digital asset backed 1:1 by reserve assets.
Earlier this month, the financial watchdog and other agencies completed a public consultation on introducing stablecoin licensing for usage and issuance of digital assets.
Last week, JD Coinlink, a subsidiary of the Chinese e-commerce giant JD.com, announced plans to launch the first stablecoin in Hong Kong. This stablecoin will be backed by highly liquid and credible assets and will be designed to track the value of the Hong Kong Dollar (HKD).
