Legislative Councilor Wu Jiezhuang proposed: Hong Kong's 'forex fund assets' should be included in BTC

Hong Kong Legislative Council member and Chairman of the Web3 Virtual Asset Development Subcommittee, Wu Jiezhuang, recently made a bold proposal to "include BTC in Hong Kong forex fund assets", attracting attention from all walks of life.

As early as July this year, when Trump vowed to establish a "BTC national strategic reserve", Wu Jiezhuang pointed out that BTC and Web3 are important nodes for global development, and Hong Kong should also study and consider including BTC in its strategic fiscal reserve under regulatory conditions.

Wu Jiezhuang recently mentioned in an interview with Wenhui Daily that if Trump vigorously promotes the inclusion of BTC in the strategic reserve, it will definitely have a major impact on reserve assets and the global market, and governments around the world cannot turn a blind eye. He said:

If major economies proactively include BTC in their strategic reserves, the value of BTC will become more stable, which will attract more and more countries to follow suit and reduce their holdings of traditional assets, causing the price of traditional assets to fall and the government's financial reserves to shrink accordingly.

Therefore, Hong Kong must study how to maintain financial security while involving BTC in the United States and affecting the traditional asset market.

Wu Jiezhuang has proposed multiple follow-ups to the Hong Kong government, including whether to consider incorporating cryptocurrencies into the fiscal reserves and considering the continuous purchase and long-term holding of forex funds; evaluating the impact of foreign countries designating BTC as a strategic reserve asset on China and Hong Kong's financial security; at the same time, we should also consider how to utilize Hong Kong's first-mover advantage and unique resource conditions in the field of cryptocurrencies and make strategic deployments.

However, Wu Jiezhuang also acknowledges that BTC still has certain limitations as a reserve asset. For example, the current market value of BTC is about $1.8 trillion, which is far behind the total market value of gold at $20 trillion. In addition, investing in BTC is not low-risk. Apart from the volatility of the coin price, investors only know that there are approximately how many wallets in the market, but they are not clear about the identities of the holders who control these assets.

After balancing risk and return, Wu Jiezhuang believes that governments and enterprises should only allocate a small portion of BTC as financial assets.

Legislative Councilor Ng Kit-chong proposed to include Hong Kong's 'forex fund assets' in BTC. This article was first published in Blocklike.