Hong Kong Legislator Urges Bitcoin Reserve to Rival US, Seeks China’s Backing

• China continues researching and leveraging blockchain nationally despite a “ban” on crypto.
• Sweeping U.S. stablecoin regulations and plans for a Bitcoin strategic reserve inspire other nations to follow suit.
• Hong Kong spot Bitcoin ETFs have stacked just $426.64 million since launching in April 2024.

Bitcoin and crypto are the new battlegrounds in the global digital economy, according to a Hong Kong legislator.

The legislator has advocated for accelerated research into leveraging BTC as a national reserve asset and stablecoin regulations and calls upon the mainland to assist in piloting stablecoin applications.

Bitcoin Reserve

Following a press conference held by U.S. AI and crypto czar David Sacks, Hong Kong lawmaker Johnny Ng called upon regulators to speed up pro-crypto efforts or risk falling behind international competitors.

Reflecting on the crypto developments taking place under Donald Trump’s administration, Ng explains that this represents a new frontier of economic competition. At the top of his proposals is to “accelerate” research on establishing a Bitcoin strategic reserve in Hong Kong.

The launch of Hong Kong’s Bitcoin and Ethereum exchange-traded funds (ETFs) marked a significant turning point in the region’s relationship with the digital asset economy, notably because of China’s “ban” on crypto activities.

However, the “One Country, Two Systems” setup doesn’t allow mainland Chinese investors to participate, which has resulted in a lackluster performance from funds thus far.

Last year, Ng also proposed creating a financing platform for blockchain and digital asset firms in the Greater Bay Area (GBA), which he believed would further secure China’s position in tech leadership.

Stablecoin Regulations

Also noting the pending stablecoin bill, the GENIUS Act, Ng calls upon his peers to allow stablecoin firms approved in a 2024 sandbox to start issuing and operating “as soon as possible.”

This ambitiously includes calling upon regions of mainland China, namely cities in the GBA, to begin piloting stablecoin applications.

The GBA, a South China supercity, is significant as it is an evolving cog within China’s Belt and Road Initiative (BRI). It comprises nine mega cities, though it has three standouts: the tech capital, Shenzhen, and the two Special Administrative Regions of tourism hotspot Macao, as well as the financial hub, Hong Kong.

This region has proven favorable amongst crypto, blockchain, AI, FinTechs, and so on, which could be a boon for Ng’s ambitions.