Key Points
- Johnny Ng, a Hong Kong politician, advocates for the inclusion of Bitcoin in the country’s financial reserves.
- Ng also urges support for the development of the local Web 3.0 industry and cryptocurrency businesses.
Johnny Ng, a leading figure in the Hong Kong Legislative Council and a recognized supporter of Web 3.0, has proposed the integration of Bitcoin into the nation’s financial reserves. These reserves were approximately $417.1 billion as of May 2024.
Ng asserts that adding Bitcoin to the national reserves could substantially enhance Hong Kong’s economic system, given the appropriate regulatory environment. The nation’s foreign reserves fell from $417.1 billion in May to $416.3 billion in June 2024, hitting the lowest point since October 2023.
Bitcoin’s Role as a Financial Asset
In a recent post on X, Ng expressed his thoughts on Bitcoin. He believes that the country’s economy could see significant improvement with the addition of Bitcoin to its national reserves.
His ideas were influenced by 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.
Ng agreed with Trump’s views, stating that “Bitcoin is worth considering as a financial reserve” due to its increasing 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 Advocating for Web 3.0 Development
Ng also expressed his willingness to discuss 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 encouraged 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 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).
