6 months ago
Hong Kong lawmaker Johnny Ng has questioned whether the city’s authorities is considering Bitcoin arsenic portion of its concern strategy.
He raised these views successful a Dec. 11 statement, highlighting the increasing global designation of Bitcoin and its decentralized quality contempt its inherent risks.
The Bitcoin reserve question
Ng questioned if the Hong Kong authorities mightiness research integrating integer assets into its fiscal reserves. He besides asked if the Exchange Fund, the concern limb of the Hong Kong Monetary Authority (HKMA), could get and clasp Bitcoin for semipermanent strategical purposes.
The lawmaker besides questioned whether the authorities had evaluated the imaginable interaction of overseas countries treating Bitcoin arsenic a strategical reserve asset, peculiarly connected Hong Kong’s economical stableness and the Hong Kong dollar system.
He asked:
“[Has] the authorities assessed and studied the interaction of [foreign countries] positioning bitcoins arsenic strategical reserve assets connected the fiscal information of China and Hong Kong?”
Ng emphasized Hong Kong’s vantage arsenic a person successful crypto innovation. He called for a strategical attack to safeguard fiscal information portion leveraging the city’s unsocial presumption successful the crypto sector.
Government’s response
Joseph Chan, Acting Secretary for Financial Services and the Treasury clarified that the Exchange Fund focuses connected globally diversified assets to negociate hazard and optimize returns.
He noted portion integer assets are not explicitly included successful its portfolio, outer money managers mightiness occasionally prosecute with them. However, these investments stay minimal. As of Sept. 30, the Exchange Fund reported full assets of HK$4,133.9 cardinal (approximately $530 billion).
Meanwhile, Chan acknowledged the increasing integration of virtual assets (VAs) into accepted finance. He highlighted the imaginable benefits of blockchain technology, specified arsenic improved ratio and transparency. However, helium besides pointed retired risks related to fiscal stability, wealth laundering, and capitalist protection.
Nevertheless, the authorities plans to support a balanced regulatory framework that mitigates these risks portion fostering liable innovation. This attack supports Hong Kong’s presumption arsenic a starring planetary fiscal hub.
He added:
“The Government and regulators volition proceed to formulate regulatory regimes to code specified risks nether the rule of “same activities, aforesaid risks, aforesaid regulations”. This attack tin make a facilitative situation to foster innovation successful a sustainable and liable manner.
The station Hong Kong lawmaker questions government’s stance connected Bitcoin amid rising planetary significance appeared archetypal connected CryptoSlate.
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