Former Binance CEO Changpeng “CZ” Zhao stated that China could move towards creating a strategic Bitcoin reserve and follow the steps taken by the United States in this regard.
Zhao shared this prediction at the Bitcoin MENA event held in Abu Dhabi on December 9. In his speech, he pointed out that small countries could take the lead in creating Bitcoin reserves, but emphasized that this process would take time and change would occur slowly.
Zhao said China’s stance on cryptocurrencies is difficult to predict because the government lacks transparency. He also noted that other countries could take similar steps after the U.S. administration’s plan to create a Bitcoin reserve was implemented.
Zhao, who grew up in China, believes that his country can change its policies quickly. However, he said that there is no evidence that the Chinese government is currently accumulating Bitcoin. However, he said that he thinks it is inevitable that China will establish a strategic Bitcoin reserve in the future.
“I would be surprised if the government ever announces it, but I would be less surprised if it accumulates it and then announces it. Bitcoin can be seen as the only real asset in the long run,” Zhao said.
While the question of which country will take the first step is on the agenda, the idea of creating a strategic Bitcoin reserve was previously brought up by US President Donald Trump. In July, Trump announced a plan at a crypto conference in which the country would buy and hold 1 million Bitcoin. However, this proposal was criticized on the grounds that the price increases would only benefit BTC holders.
Zhao was released in September after serving four months in federal prison for violating Anti-Money Laundering laws. Zhao, who resigned as CEO in November 2023, will no longer be involved in Binance’s management as per his agreement. Zhao, who has also been banned from certain business activities, has signaled that Trump could pardon him if he assumes office.