Bitcoin as a strategic reserve asset is gaining traction across the board with Hong Kong and Germany joining the train.
As the year ends, more countries have intensified their push for strategic Bitcoin (BTC) reserves. Countries like Hong Kong and Germany are considering joining the United States to explore adopting Bitcoin as a reserve asset. Lawmakers in both regions have presented their proposal for the Bitcoin reserve.
Other Countries Mirror US Bitcoin Plans
According to one legislator in Hong Kong, integrating the flagship cryptocurrency into the country’s Exchange Fund will positively impact financial security. He noted this, judging by the changing global crypto dynamics.
The Chairman of Hong Kong’s Web3 Virtual Asset Development Subcommittee, Wu Jiezhuang, thinks that Hong Kong’s “One Country, Two Systems” could help it navigate the inclusion of BTC BTC $85 823 24h volatility: 3.9% Market cap: $1.71 T Vol. 24h: $49.05 B in its Exchange Fund. It is worth noting that the country has yet to consider digital assets as targeted investments for the Exchange Fund.
However, it is open to having external investment managers get minimal exposure to crypto through diversified portfolios. Judging by its crypto-friendly efforts in the past, Hong Kong may be expanding its crypto reach with a national Bitcoin reserve.
Already, 12 crypto-linked ETFs are trading on the Hong Kong Stock Exchange. These products have a total market value of approximately HK$7.4 billion. At the Bitcoin MENA conference on December 9 in Abu Dhabi, former Binance CEO Changpeng Zhao stated his belief in China’s adoption of a strategic Bitcoin reserve as well
Similarly, former German Minister of Finance, Minister Christian Lindner, proposed collaboration between the European Central Bank (ECB) and the German Bundesbank to add BTC to their reserves. Lindner acknowledged the US’s achievement in terms of a strategic Bitcoin reserve.
“The new Trump administration is pursuing an extremely progressive policy on crypto-assets such as Bitcoin. In Washington, there is even consideration of the Federal Reserve including crypto-assets alongside currencies and gold in its reserves,” he said.
The Finance Minister does not think Germany and Europe should fall behind again. In a parliamentary meeting held on December 17, Sarah Knafo, a member of the European Parliament, delivered a pro-Bitcoin speech. She advocated establishing a “Bitcoin strategic reserve” within the European Union.
Meanwhile, the EU is set to officially commence compliance for its Market in Crypto Asset (MiCA) as the year ends.
US States Lay Down Legislation for Bitcoin Reserve
After Donald Trump gained victory in the US 2024 presidential elections, some nations have become drawn to cryptocurrencies.
Bitcoin exchange traded Funds (ETFs) have garnered much attention as countries become more interested in the national reserve. Many believe in the coin’s capacity to help them navigate the shifts in global economics. Meanwhile, some US states are proposing legislation to hold 10% of their reserves in BTC. At the beginning of December, ten states confirmed the introduction of legislation to implement the strategic Bitcoin reserves.
Dennis Porter, the CEO and co-founder of Satoshi Action Fund, and Republican Senator for Wyoming, Cynthia Lummis, have contributed significantly to this development.
next