Strategic Bitcoin Reserve: Germany, Hong Kong Also In Action

More Countries In The Race For A Strategic Bitcoin Reserve

Strategic Bitcoin Reserve: US, Russia, Germany, Hong Kong 

The global crypto dynamics are changing. To remain financially secure, countries have to align themselves with what is in trend. As a result, several new names can be seen entering the race for strategic Bitcoin reserve.

Countries like Germany and Hong Kong are into action; they’ve already put forward the proposal to establish a strategic Bitcoin reserve. 

Hong Kong’s Efforts

Chairman of Web3 Virtual Asset Development Subcommittee has suggested the inclusion of Bitcoin in its Exchange Fund. In response, the Treasury Bureau said that crypto assets are not target investments for the Exchange Fund, but external investment managers can be exposed to crypto assets on a small scale through diversified portfolios.

Hong Kong, a special administrative region of China, has shown some crypto-friendly efforts in the past. Its Stock Exchange has 12 cryptocurrency-linked ETFs listed that total a market value of HK$7.4 billion. Small countries like El Salvador are up setting the precedence and Hong Kong may follow suit.

As per reports, China holds 190,000 Bitcoins, second only to the US’s 210,000 BTC. This $18 billion (HK$140 billion) BTCs could be converted into ETFs listed in the region, as per market analysts.

Talking of the US, several states have proposed 10% of state reserves to be held in BTC. Wyoming Senator Cynthia Lummis was in the news recently where she affirmed implementing a strategic Bitcoin reserve plan for the country and accumulating over 1M Bitcoins.

Germany Also In Line 

A former Finance Minister has suggested the European Central Bank and the German Bundesbank consider adding BTC to their reserves, soon after a similar demand made last week. He reasoned that the US is getting extremely progressive on crypto-assets like BTC and is considering the Federal Reserve to include crypto-assets alongside currencies and gold.

He even added that as the US tries to lead the world in USD and crypto, Germany and Europe should not fall behind again, also emphasizing on the need for making crypto-assets a part of Frankfurt’s central bank reserves.

Bottom Line   

Russia is yet another country that’s into a strategic Bitcoin reserve plan. Japan, however, has rejected the proposal for now.