HK and Germany consider setting up strategic BTC reserve
2024-12-30
Category: None

Many countries all over the world are now trying to set up strategic Bitcoin reserves, as policymakers in Hong Kong as well as Germany proposed the proposal. 
A legislator from Hong Kong revealed that having Bitcoin in the Exchange Fund in the country will help balance financial security amid the altering crypto dynamics over the globe. After the win of the newly elected president, Donald Trump, most countries are seriously thinking about BTC to keep it as a national reserve to direct the shifts in global economics. The One County, Two Systems supremacy 
The Chairman of Hong Kong’s Web3 Virtual Asset Development Subcommittee, Wu Jiezhuang advised that the country should hold its One Country, Two Systems supremacy to pilot the inclusion of Bitcoin in its Exchange Fund. 
The reply of the Treasury Bureau wrote that as of now, crypto assets are not aimed investments for the Exchange Fund. At the same time, it added that external investment managers can have some exposure to crypto assets by diversified portfolios. 
Hong Kong could consider establishing a strategic Bitcoin reserve in the future, aligning with its ongoing crypto-friendly initiatives in recent years. Currently, the Hong Kong Stock Exchange lists 12 cryptocurrency-related ETFs, collectively valued at approximately HK$7.4 billion.
In addition, Hong Kong appears to be exploring a similar trajectory to that of El Salvador. According to a report by local media outlet DW Media, China holds around 190,000 Bitcoins, ranking second globally, just behind the United States, which possesses about 210,000 Bitcoins.
Market experts remain optimistic, suggesting that these holdings could potentially be transformed into ETFs registered in Hong Kong.Russia’s Future Plan 
Christian Lindner, the former Finance Minister of Germany, has proposed that both the European Central Bank (ECB) and the German Bundesbank should explore the possibility of adding Bitcoin to their reserves. His statement followed a similar call made by a European MP the previous week.
Lindner highlighted that President Trump’s newly elected administration is adopting a forward-thinking stance on crypto-assets such as Bitcoin. In the United States, there are ongoing discussions about whether the Federal Reserve should include crypto-assets alongside traditional reserves like currencies and gold.
He further noted that the U.S. is striving to lead globally in both the USD and cryptocurrency sectors. Lindner stressed that Germany and Europe must take steps to ensure they do not fall behind, suggesting that Frankfurt should evaluate the potential role of crypto-assets in central bank reserves.
Besides Hong Kong and Germany, Russia is thinking over a strategic Bitcoin reserve as a result of global sanctions. 