Hong Kong lawmaker Johnny Ng has questioned whether or not town's authorities is contemplating bitcoin as a part of its funding technique.
He made these views in a press release on December 11, highlighting the rising world acceptance of bitcoin and its decentralized nature regardless of its inherent dangers.
The query of bitcoin reserves
Ng requested whether or not the Hong Kong authorities may discover integrating digital belongings into its fiscal reserves. He additionally requested whether or not the Alternate Fund, the funding arm of the Hong Kong Financial Authority (HKMA), may purchase and maintain bitcoins for long-term strategic functions.
The lawmaker additionally questioned whether or not the federal government had assessed the potential influence of overseas international locations treating 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 influence of (overseas international locations) inserting Bitcoin as a strategic reserve asset on the monetary safety of China and Hong Kong?
Ng emphasised Hong Kong's benefit as a frontrunner in crypto innovation. He referred to as for a strategic strategy to make sure monetary safety whereas leveraging town's distinctive place within the crypto sector.
Authorities response
Joseph Chan, Performing Secretary for Monetary Companies and the Ministry of Finance, clarified that the exchange-traded fund focuses on globally diversified belongings to handle threat and optimize returns.
He famous that though digital belongings aren’t explicitly included in his portfolio, exterior fund managers might often have interaction with them. Nonetheless, these investments stay minimal. As of September 30, the Alternate Fund reported whole belongings of HK$4,133.9 billion (roughly $530 billion).
In the meantime, Chan acknowledged the rising integration of digital belongings (VA) into conventional finance. He highlighted the potential advantages of blockchain know-how, similar to improved effectivity and transparency. Nonetheless, he additionally highlighted dangers associated to monetary stability, cash laundering and investor safety.
Nonetheless, the federal government plans to take care of a balanced regulatory framework that mitigates these dangers whereas encouraging accountable innovation. This strategy helps Hong Kong's place as a number one worldwide monetary centre.
added:
“Authorities and regulators will proceed to formulate regulatory regimes to deal with these dangers primarily based on the precept of 'similar exercise, similar threat, similar regulation'. This strategy can create an enabling setting for selling innovation in a sustainable and accountable method.
