Will Hong Kong consider Bitcoin?

[Majestic-milf]

On the occasion that took place in 2019 in Hong Kong where it's inhabitants took to the streets to speak against the aggressive and excessive control exercised over them by China, citizens feel they are being robbed of their rights on being a sovereign nation and this action has been exacerbated by the COVID-19 pandemic and it's resultant attempts to curb it's spread by the Chinese government who imposes stringent measures as support from the West were not forthcoming..

As a result of these actions by China, Hong Kong seem to struggle with their economy and this matter is made worse as their currency looks to be tied to that of the dollar.
 The Hong Kong Monetary Authority are striving to keep their currency to trade at HK 7.75 or at most HK 7.85 to the dollar. But at the rate the dollar interest rate is increasing, it's hard for the Hong Kong currency to keep up.
 Will there be a possibility of Hong Kong seeking to adopt Bitcoin as a legal tender since they seem to be a Bitcoin friendly state and it's acceptance can help reduce the Chinese government's dominance on them. What's your take on this? https://bitcoinmagazine.com/culture/bitcoin-can-free-hong-kong-from-china

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[Upgrade00]

Bitcoi does not solve economic decline or inflation, so it cannot hello rescue the financial situation in Hong Kong.
Bitcoin has utility as a currency and can be used by the citizens to attain some sort of freedom and autonomy, particularly following recent news of banks in China withholding public funds.

On the national stage, Bitcoin would not have much of an impact on the countries economy and being used as a legal tender would not encourage wide spread adoption, as there are not many physical outlets accepting it.

[jackg]

Investments locally and internationally should've already helped Hong Kong's economy. If they haven't done this then they will probably face huge problems (self dependency can only go so far when you're over developed like Hong Kong is).

If Hong Kong is facing financial hardship/decline I think China would be to blame for that (either actively or passively).

[Baofeng]

Almost all of the countries in South East Asia is suffering due to Covid and local currency as struggling against the dollar, Sri Lanka's government collapses. So it's not only in HongKong that this things are happening, it's all over her neighboring countries. How do I know? it's because I live in that region and somewhat our economy is messed up too.

However, if Hong Kong will consider bitcoin just to salvage their economy? I doubt that, bitcoin will not save any countries economy, it's up to the sitting President or who is in charge of the country to make good programs to recover from the Covid-19 effect, and the inflation due to the rising price of crude oil in the world market.

[Hydrogen]

One of the reasons china banned crypto was to prevent capital flight. Large sums being moved outside of china's borders to presumed safe havens in other countries. It could reduce business and deposits for chinese banks.

I doubt they would legalize crypto in hong kong. Which might quickly become a hotspot for chinese to move and store funds outside of the country.

Access to crypto would probably be better for chinese consumers. Investors naturally emphasize diversification and not putting all of ones eggs in the same basket. Crypto provides a wide range of assets and tokens which could provide good protection against inflation and recession.

China's economy trends towards being centralized within the yuan and chinese banks. If either the yuan or banks ever developed serious problems, everyones wealth could take a serious hit due to the lack of alternate options and intrinsic diversification strategies.

[blockman]

Put it this way every country can consider bitcoin but, despite the true potential of bitcoin that can show and given to each individual and country. There are just some boundaries that we can't expect to go further or we're overexaggerated about it. I remember this scene in Hongkong where there was tension about certain laws and conflict with China's ruling laws towards them. Being open to bitcoin or proclaiming that it's totally legal on them and they're very optimistic about it might touch China's feeling again and could result a pressure against.

[rodskee]

This is something that took my interest to look at , and yes Hong Kong may find Bitcoin as their another option from the harassment of China , if they will enter and support crypto specifically Bitcoin then they will find another power from it.
but the problem is China as anti Bitcoin will find this thread if HongKong enters the event and surely there will be more aggressing action that they will seek.

[Die_empty]

There have been a major political war between the West and China concerning the future of Hong Kong. As regards to the issue of making bItcoin a legal tender in Hong Kong both the West and China would detest such moves because it might be counterproductive to their economy. It would mean that the Hong financial transactions might bypass the Chinese Cross-Border Interbank Payment System (CIPS) and America's Society for Worldwide Interbank Financial Telecommunications (SWIFT). Income that would have come through charges from using these transaction channels might be limited if Bitcoin becomes a legal tender.

[stompix]

Will there be a possibility of Hong Kong seeking to adopt Bitcoin as a legal tender since they seem to be a Bitcoin friendly state and it's acceptance can help reduce the Chinese government's dominance on them.

Reduce Chinese dominance?
Do you know the full name of Hong Kong?
It's Hong Kong Special Administrative Region of the People's Republic of China you're talking about reducing the influence of a country within its own borders? How does that work?

I'm amazed reading the replies here, are some people still believing Hong Kong is some kind of independent country or what?

Hong Kong considering bitcoin, that's a laugh! Coming from Bitcoin magazines that claimed Salvador bonds were oversubscribed by three times back in February and that work has already started at the Volcano city no wonder, those guys are in a world of their own.

[hugeblack]

I think that the adoption of bitcoin in any country will bring it more problems (especially from IMF) than the amount of benefit. Therefore, most countries with coherent economies will not think of taking this step, at least for the time being.

It is also better for Bitcoin to be away from the conflict between the United States and China, these countries can wage a trade war greater than a trillion dollars, and given the Market cap of the Bitcoin market at the present time, one of these two countries can cause damage that makes Bitcoin return to levels of 3000 dollars easily.

[noorman0]

What I do know is that Hong Kong is part of China. I doubt that they will escape the scrutiny of the "parent" state even just planning to adopt an entity they are clearly opposed to. This is clear defiance.
Hong Kong is only administratively separated but military defense is still completely dependent on China. So taking the step of adopting bitcoin as a financial solution may just be a pseudo plan, or else they will have to let go of all dependence on China and become an independent country first.

[inthelongrun]

What I do know is that Hong Kong is part of China. I doubt that they will escape the scrutiny of the "parent" state even just planning to adopt an entity they are clearly opposed to. This is clear defiance.
Hong Kong is only administratively separated but military defense is still completely dependent on China. So taking the step of adopting bitcoin as a financial solution may just be a pseudo plan, or else they will have to let go of all dependence on China and become an independent country first.

Exactly and there is a very tiny chance that Hongkong can even secede from huge China. If the Chinese central government is opposed to bitcoin then it will never allow Hongkong to consider it as a legal tender. The Chinese central government is starting to show its muscles in Hongkong government. AFAIK there were a lot of deals from western nations that got canceled by China or by the west itself. Before 2030 I won't be surprised if Hongkong will already become a full pledged Chinese territory and democracy becomes in the name only. 

[virasisog]

What I do know is that Hong Kong is part of China. I doubt that they will escape the scrutiny of the "parent" state even just planning to adopt an entity they are clearly opposed to. This is clear defiance.
Hong Kong is only administratively separated but military defense is still completely dependent on China. So taking the step of adopting bitcoin as a financial solution may just be a pseudo plan, or else they will have to let go of all dependence on China and become an independent country first.

China will surely disagree with it since Hongkong is still part of the country. They will not allow any currency that they couldn't regulate. The Chinese government will surely be strict regarding this matter and despite the function of Bitcoin in the possible economic growth of Hongkong during this global crisis, China will surely intervene.

[avikz]

Nope! I don't see it happening! Bitcoin isn't created to alleviate economical downturn. It is just a truatless currency. If Hong Kong is already struggling with their currency rate fluctuations, bitcoin will make it worse because it is an extremely dynamic currency system.

So no leader will choose that path for sure. Also China has a direct control over Hong Kong and the Chinese government is known for their hatred against cryptocurrency. That's another reason why Hongkong will not adopt cryptocurrency as a legal tender.

[Leviathan.007]

I don't know the Hong Kong government very well but from that's very much possible for any government to consider bitcoin and accept it one day this can happen for Hong Kong from what I can see on the news they are very much near to China and many seeing China stopped the usage of bitcoin and banning the cryptocurrency-related transactions can also affect some other countries when they are near to this country, but in my own idea sooner or later this will happen for most of the country and they will start acceting bitcoin, unlike China.

[Lucius]

Reduce Chinese dominance?
Do you know the full name of Hong Kong?
It's Hong Kong Special Administrative Region of the People's Republic of China you're talking about reducing the influence of a country within its own borders? How does that work?

I'm amazed reading the replies here, are some people still believing Hong Kong is some kind of independent country or what?

People more than obviously have completely wrong ideas about some things, and such assumptions are not only wrong, but also completely meaningless, considering that HK is a part of China that somehow has a special status. It would make more sense (although not much more) if such a question was raised regarding Taiwan, although Bitcoin cannot be the ultimate solution for any country in the sense that that country can expect some kind of spectacular progress as we see in the example of El Salvador.

I think that too many people (even on the forum) are thinking in the wrong direction in the sense that Bitcoin needs to become legal tender in order to become successful, but that is actually not that important at all. I can buy almost everything I want for Bitcoin in my country, and at the same time the central bank and related institutions have a similar or the same opinion about Bitcoin as some of the most famous critics like Buffett, Schiff or Dr. Doom.

Bitcoin doesn't really need any recognition from the authorities that it is better than fiat (and it will never get it), but it just needs the same conditions as other currencies and to be an alternative for those who want it.

[naira]

One country with 2 different government systems. Although different, the relationship with the territory of power is still full control where control over Hong Kong can be changed at any time when China asks for it. This case has long been a topic and continues to this day. Even to the point where Hong Kong wants to separate itself from China's territory. The source of Hong Kong's economic income is quite large and feels like it wants to be independent, supported by the US contribution because the Hong Kong government is closer to the US than China.

We all know that China has the character of not accepting dictation from other countries, especially the US in running the government in its territory. To maintain stability to maintain the agreement when Britain released Hong Kong to China. Referring to the history of 1839-1842 until the formation of the Declaration agreement which describes Hong Kong will be returned to the PRC from July 1 1997 and will be valid for the next 50 years (2047).



In the end, the Hong Kong economy to adopt Bitcoin cannot be separated from the involvement of China which has decided Bitcoin is no longer friendly to it. As mining was closed and destroyed the market at that time, it was a factor that China would not approve of Bitcoin being used legally in Hong Kong.

[Peanutswar]

I dont think so the use of the bitcoin will help them with the current state of their country but it is just another way of adaptation into the way of technology and innovation with their trasantions like making more convenient to their people at the same time but if we talk about their whole total economy i guess it does not bring too much impact.

[kryptqnick]

I am sympathetic with the desire of Hong Kong to be a more free and democratic place that allows for both political and financial freedom on the level that is not allowed in most of China. The best Hong Kong can hope for is to gain some more ground within a special administrative region that has a separate economic system. As the article says, the prospects for Hong Kong look quite bleak, unfortunately, as more and more freedoms are taken away by the authoritarian China. I don't think Bitcoin can change that.

[dothebeats]

They'd be in a much tighter spot if they ever decide to do this. China is trying to keep all of its citizens' money inside its country to artificially inflate their wealth. If Hong Kong's people decide to use bitcoin, it will still reflect somewhat on China's economy and they don't want that to happen surely. But IMO, what Hong Kong needs is not cryptocurrency but rather a clear political will that may help them get recognized around the world as a country, just like what Taiwan has been doing for the past few decades. Then again, the control that the Chinese government has on Hong Kong is undeniably tight, and its grip will only get tighter as they see that the citizens of this island is wanting to break free from them.