Hong Kong lawmaker Johnny Ng questioned whether or not the town authorities was contemplating Bitcoin as a part of its funding technique.
He expressed this view in a December 11 assertion, highlighting Bitcoin's rising world recognition and its decentralized nature regardless of its inherent dangers.
The Bitcoin Reserve Query
Ng questioned whether or not the Hong Kong authorities would possibly contemplate incorporating digital property into its budgetary reserves. He additionally questioned whether or not the Trade Fund, the funding arm of the Hong Kong Financial Authority (HKMA), might purchase and maintain Bitcoin for long-term strategic functions.
The lawmaker additionally questioned whether or not the federal government had assessed the potential impression of international nations' therapy of 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 impression of (international nations’) positioning of bitcoins as strategic reserve property on the monetary safety of China and Hong Kong?”
Ng highlighted Hong Kong's benefit as a pacesetter in crypto innovation. He known as for a strategic method to preserving monetary safety whereas leveraging the town's distinctive place within the crypto sector.
Authorities response
Joseph Chan, Performing Secretary of Monetary Providers and Treasury, stated the Trade Fund focuses on globally diversified property to handle dangers and maximize returns.
It famous that whereas digital property should not explicitly included in its portfolio, exterior fund managers could sometimes interact with them. Nevertheless, these investments stay minimal. As of September 30, the Overseas Trade Fund reported whole property of 4,133.9 billion Hong Kong {dollars} (about 530 billion US {dollars}).
On the identical time, Chan acknowledged the rising integration of digital property (VAs) into conventional finance. He highlighted the potential advantages of blockchain know-how, reminiscent of improved effectivity and transparency. Nevertheless, he additionally highlighted dangers associated to monetary stability, cash laundering and investor safety.
However, the federal government plans to take care of a balanced regulatory framework that mitigates these dangers whereas selling accountable innovation. This method helps Hong Kong's place as a number one worldwide monetary middle.
He added:
“The federal government and regulators will proceed to formulate regulatory regimes to handle these dangers on the precept of 'identical actions, identical dangers, identical laws'. This method can create a positive surroundings to foster innovation in a sustainable and accountable method.
