Hong Kong lawmaker Johnny Ng questioned whether or not the Hong Kong authorities is contemplating Bitcoin as a part of its funding technique.

He raised these views in a December 11 assertion, highlighting the rising world consciousness of Bitcoin and its decentralized nature regardless of its inherent dangers.

Bitcoin reserve questions

Ng questioned whether or not the Hong Kong authorities would possibly contemplate integrating digital belongings into its fiscal reserves. He additionally requested whether or not the Change Fund, the funding arm of the Hong Kong Financial Authority (HKMA), may purchase and maintain Bitcoin for long-term strategic functions.

The lawmaker additionally questioned whether or not the federal government had assessed the potential affect of a overseas nation treating Bitcoin as a strategic reserve asset, significantly on Hong Kong's financial stability and the Hong Kong greenback system.

he requested:

“Has the federal government assessed and studied the affect of (overseas) positioning Bitcoin as a strategic reserve asset on the monetary safety of China and Hong Kong?”

Mr. Ng emphasised Hong Kong's benefits as a pacesetter in cryptocurrency innovation. He referred to as for a strategic strategy to safeguarding monetary safety whereas leveraging town's distinctive place within the cryptocurrency house.

Authorities response

Joseph Chan, Performing Secretary of the Treasury for Monetary Providers, revealed that the Change Fund focuses on globally diversified belongings to handle danger and optimize returns.

He famous that though digital belongings will not be explicitly included within the portfolio, exterior fund managers could also be concerned every so often. Nevertheless, these investments are minimal. As of September 30, the trade fund reported whole belongings of HK$4,133.9 billion (roughly $530 billion).

In the meantime, Chan acknowledged the rising integration of digital belongings (VA) into conventional finance. He highlighted the potential advantages of blockchain know-how, together with elevated effectivity and transparency. However he additionally pointed to dangers associated to monetary stability, cash laundering and investor safety.

However, the federal government intends to take care of a balanced regulatory framework that reduces these dangers whereas fostering accountable innovation. This strategy helps Hong Kong's standing as a serious worldwide monetary hub.

He added:

“Governments and regulators will proceed to develop regulatory regimes to handle such dangers, based mostly on the precept of 'similar exercise, similar danger, similar regulation.' This strategy permits us to create a conducive setting to foster innovation in a sustainable and accountable method.