Hong Kong Blockchain Association Urges Gov't to Buy, Hold Bitcoin

IconCryptoNewsTerminal Staff28 Jul, 2024

cryptonews.jpg

Hong Kong Blockchain Association Urges Gov't to Buy, Hold Bitcoin

The Hong Kong Blockchain Association (HKBA) is advocating for the Government Exchange Fund (GEF) to invest a portion of its reserves in Bitcoin (BTC). The HKBA believes that this move would diversify the GEP's portfolio and reduce its exposure to the US dollar. In a statement, the HKBA said that Bitcoin has "proven to be a resilient and uncorrelated asset." The group also noted that Bitcoin is increasingly being adopted by institutional investors. The GEP is a pool of assets that is managed by the Hong Kong Monetary Authority. The fund is used to support the Hong Kong dollar and to provide liquidity to the financial system. In recent years, the GEP has come under increasing pressure to diversify its holdings. The fund is currently heavily invested in US dollar-denominated assets, which exposes it to the risk of a decline in the value of the US dollar. The HKBA's proposal is one of several that have been made to diversify the GEP's holdings. Other proposals include investing in gold, real estate, and infrastructure.

Related News