Fang Hongjin Recommends the Hong Kong Foreign Reserve Fund to Purchase and Hold Bitcoin Long-Term
Publication Time:2024-07-29 12:52:09
In recent times, Fang Hongjin, a co-chair of the Hong Kong Blockchain Association, proposed that the Hong Kong government's foreign reserve fund should consistently buy and hold Bitcoin for the long term. This measure aims to enhance the diversification and anti-inflation capabilities of the foreign reserve fund's assets, reducing dependence on a single dollar asset and expanding the room for financial policy autonomy. Early purchase of Bitcoin can also establish the city's influence in the international market, utilizing the collateral financing characteristics of Bitcoin to counteract potential attacks on Hong Kong's联系 exchange rate by international speculative capital. Furthermore, this strategy is expected to help Hong Kong become an international Web3.0 hub, providing more stable financial credit guarantees for the city. Fang Hongjin pointed out that Bitcoin, as a digital gold, has been recognized by the international traditional financial industry. Countries such as El Salvador, which announced in 2021 its adoption of Bitcoin as an official currency anchor asset, and Switzerland, which has included Bitcoin in its national bank's reserve assets, are adopting Bitcoin as part of their reserves. The United States may also consider Bitcoin as a strategic asset reserve for the nation, further stimulating demand from central banks and traditional financial institutions for Bitcoin. Fang Hongjin predicts that as Bitcoin's influence in global financial markets grows, its market value could reach parity with gold, with a single Bitcoin potentially rising from its current $68,000 price to nearly $600,000. Therefore, it is recommended that the Hong Kong foreign reserve fund allocate a certain proportion of Bitcoin for long-term holding, thereby adding weight to the stability and autonomy of Hong Kong's finance.
Bitcoin
Diversified Investment
Foreign Reserve Fund
Anti-Inflation