Against the backdrop of the booming global cryptocurrency market, Binance founder Zhao Changpeng (CZ) made a striking observation at the Bitcoin MENA conference held in Abu Dhabi on December 9, 2024: he believes that China may become one of the countries to establish Bitcoin reserves. This viewpoint has sparked widespread discussion, especially in light of the United States' impending implementation of a Bitcoin strategic reserve plan.
Zhao Changpeng stated that Bitcoin is referred to as 'digital gold,' and its scarcity and decentralized characteristics make it increasingly popular among investors. Compared to traditional fiat currencies and financial instruments, it has a stronger ability to preserve value. In his view, the Bitcoin reserve strategy is not only a means to combat inflation but also an important way to enhance national financial security.
Zhao Changpeng pointed out that although China's stance in the cryptocurrency field is somewhat ambiguous and uncertain, the trend of establishing Bitcoin reserves is 'inevitable.' When the United States truly begins to establish Bitcoin reserves, it could prompt other countries to follow suit. At some point, China must also take this step, as Bitcoin is the only 'hard asset.' However, before that, smaller countries will likely be the first to adopt Bitcoin reserves to combat inflation and external economic shocks.
Although there is currently no concrete evidence of China hoarding Bitcoin, Zhao Changpeng, who grew up in China, believes that once China decides to take action, it can swiftly implement policies. CZ suggests that China may emulate the Bitcoin reserve plan proposed by the Trump administration in the United States, but it is more likely to first secretly amass Bitcoin on a large scale and then formally announce its strategic plans to the outside world at the appropriate time. This 'quiet' strategy could allow China to quickly enter the Bitcoin market without other countries noticing.
Zhao Changpeng's perspective has prompted reflections on the future world economy: If Bitcoin truly becomes a global reserve asset, how will traditional financial systems respond to this change? How will central banks adjust their monetary policies to accommodate this emerging asset? These answers remain unknown; however, it is reasonable to boldly predict that the future financial system may center around Bitcoin, forming a new type of international monetary system, with fierce competition among countries in this field.
Meanwhile, it is worth mentioning that David Bailey, CEO of BTC Inc. and advisor to the Trump campaign, recently revealed that four undisclosed countries have agreed to establish strategic Bitcoin reserve plans. Although these countries have not yet disclosed their specific reserve quantities or implementation timelines, this indicates that an increasing number of countries are beginning to recognize the value of Bitcoin as a 'hard asset.' In the current environment of heightened global economic uncertainty, competition among nations may prompt more countries to consider incorporating Bitcoin into their foreign exchange reserves.
Additionally, Bailey hinted at the formation of an organization of Bitcoin-holding countries, similar to the current traditional international organization of the Group of Seven (G7) — the 'Bitcoin G7.' The Bitcoin G7 is rapidly evolving from a joke into a viable concept, which could include countries that control the most Bitcoin, such as the United States and China, the two largest holders in the world. Countries could communicate and collaborate on this platform to jointly promote the application and development of Bitcoin.
As more countries begin to value Bitcoin and other digital assets, the global financial landscape is quietly changing. Bitcoin is not just an investment tool; it is being seen as a new form of currency that may play a significant role in future international trade.
The future global reserve currency may no longer rely solely on the dollar or gold but could shift towards decentralized digital assets like Bitcoin. This transition will change the fundamental structure of the global monetary system, making international trade and payment systems more open, transparent, and efficient. Bitcoin's position as a global reserve asset is gradually solidifying, heralding the arrival of a new era of a decentralized global economy.
Overall, the actions of multiple countries in promoting Bitcoin reserve plans not only signal recognition of the cryptocurrency market but also reflect a profound anticipation of the future development of the global financial system. As the digital economy continues to evolve, Bitcoin's reserve strategy could have far-reaching implications for the global economy. Policymakers and investors in various countries need to closely monitor this trend, seize opportunities, and effectively respond to the ensuing challenges.
