Hong Kong and Germany Consider Adopting Strategic Bitcoin Reserves
As the year ends, several countries are increasing efforts to establish strategic Bitcoin (BTC) reserves. Hong Kong and Germany are exploring adopting Bitcoin as a reserve asset, following proposals from lawmakers in both regions.
Other Countries Mirror US Bitcoin Plans
A legislator in Hong Kong stated that integrating Bitcoin into the country’s Exchange Fund could enhance financial security, reflecting global shifts in cryptocurrency dynamics. Wu Jiezhuang, Chairman of Hong Kong’s Web3 Virtual Asset Development Subcommittee, believes that the region's “One Country, Two Systems” framework could facilitate BTC inclusion in the Exchange Fund, despite current limitations on digital assets as targeted investments.
Hong Kong is open to external investment managers having minimal crypto exposure through diversified portfolios. The region has already made strides with 12 crypto-linked ETFs trading on the Hong Kong Stock Exchange, valued at approximately HK$7.4 billion. At the Bitcoin MENA conference on December 9 in Abu Dhabi, former Binance CEO Changpeng Zhao expressed optimism about China's potential adoption of a strategic Bitcoin reserve.
In Germany, former Finance Minister Christian Lindner proposed collaboration between the European Central Bank (ECB) and the German Bundesbank to add Bitcoin to their reserves, acknowledging the US’s progress in this area. He noted a shift in policy towards cryptocurrencies like Bitcoin under the new Trump administration, which may consider including crypto-assets in federal reserves alongside currencies and gold.
During a parliamentary meeting on December 17, European Parliament member Sarah Knafo advocated for establishing a “Bitcoin strategic reserve” within the European Union. Concurrently, the EU is set to begin compliance with its Market in Crypto Asset (MiCA) regulations by year-end.
US States Lay Down Legislation for Bitcoin Reserve
Interest in cryptocurrencies has surged following Donald Trump's victory in the US 2024 presidential elections. Bitcoin exchange-traded funds (ETFs) are attracting attention as countries explore national reserves, with many viewing Bitcoin's potential to aid in navigating global economic changes. Ten US states have introduced legislation to allocate 10% of their reserves to BTC, marking a significant legislative movement toward strategic Bitcoin reserves.
Dennis Porter, CEO and co-founder of Satoshi Action Fund, along with Republican Senator Cynthia Lummis of Wyoming, have played key roles in advancing this initiative.