Hong Kong lawmaker questions government’s stance on Bitcoin amid rising global significance

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

He expressed these views on December 11 statementhighlighting the rising international recognition of Bitcoin and its decentralized nature, regardless of its inherent dangers.

The Bitcoin Reserve Query

Ng puzzled whether or not the Hong Kong authorities may discover integrating digital property into its funds reserves. He additionally requested whether or not the Trade 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 evaluated the potential influence of international international locations treating Bitcoin as a strategic reserve, significantly on Hong Kong’s financial stability and Hong Kong’s greenback system.

He requested:

“[Has] the federal government has assessed and studied its influence [foreign countries] Place Bitcoins as strategic reserves for the monetary safety of China and Hong Kong?”

Ng highlighted Hong Kong’s benefit as a frontrunner in crypto innovation. He known as for a strategic strategy to make sure monetary safety whereas leveraging the town’s distinctive place within the crypto sector.

The federal government’s response

Joseph Chan, Performing Secretary for Monetary Providers and the Ministry of Finance, clarified that the Trade Fund focuses on globally diversified property to handle dangers and optimize returns.

He famous that whereas digital property should not explicitly included within the portfolio, third-party fund managers might often come into contact with them. Nevertheless, these investments stay minimal. The Trade Fund will likely be obtainable from September 30 reported whole property of HK$4,133.9 billion (roughly $530 billion).

In the meantime, Chan acknowledged the rising integration of digital property (VAs) into conventional finance. He highlighted the potential advantages of blockchain expertise, resembling improved effectivity and transparency. Nevertheless, he additionally pointed to dangers associated to monetary stability, cash laundering and investor safety.

Nonetheless, the federal government intends to keep up a balanced regulatory framework that limits these dangers whereas selling accountable innovation. This strategy helps Hong Kong’s place as a number one worldwide monetary centre.

He added:

“The federal government and regulators will proceed to formulate regulatory regimes to handle such dangers beneath the precept of “identical actions, identical dangers, identical laws”. This strategy can create an enabling surroundings to advertise innovation in a sustainable and accountable method.