A Hong Kong legislator, Wu Jiexhuang, is advocating for Bitcoin to be included in the region’s national reserves, leveraging the “one country, two systems” policy for financial innovation and security. This proposal comes amidst growing global interest in Bitcoin as a strategic reserve asset, with examples like El Salvador, Bhutan, and certain U.S. states adopting the cryptocurrency for their reserves.

Jiexhuang suggested that Hong Kong study the market impact of U.S.-based Bitcoin exchange-traded funds (ETFs) before incorporating the asset. Highlighting Bitcoin's potential to attract investment and talent, he emphasized that it could strengthen financial stability while offering Hong Kong a first-mover advantage in the digital asset market. By holding Bitcoin as part of its reserves, Hong Kong could mitigate market disruptions and position itself strategically in the face of growing adoption.

China’s financial influence also plays a key role in this narrative. With 190,000 Bitcoin held through confiscation efforts, China’s Bitcoin reserve ranks second globally, behind the United States. Jiexhuang’s stance aligns with Hong Kong’s push to establish clear cryptocurrency regulations under a “same business, same risks, same rules” philosophy. He warned that if major economies adopt Bitcoin in their reserves, traditional assets could lose value, affecting fiscal reserves tied to these assets.

In mid-2024, another legislator, Johnny Ng, revealed plans to assess Bitcoin's feasibility for Hong Kong’s reserves. Ng emphasized the global rise of Bitcoin and its critical role in integrating digital assets into traditional financial systems. With these initiatives, Hong Kong is positioning itself as a leader in the crypto-driven financial revolution.