At the Bitcoin MENA conference in Abu Dhabi, Changpeng Zhao (CZ), former CEO of Binance, stated that China "cannot avoid" establishing a strategic Bitcoin (BTC) reserve fund. CZ emphasized that while China's stance on cryptocurrency is very unpredictable due to the government's lack of transparency, it is likely that the country will accumulate bitcoin before officially announcing such a reserve fund.
Is China secretly accumulating Bitcoin?
Former CEO of Binance, Changpeng Zhao, stated that he has not yet seen evidence that the Chinese government is accumulating bitcoin, but he emphasized that it is only a matter of time before this happens. He added that China could "act very, very quickly" regarding policies if it wants to.
CZ explains that China may follow the example of the United States, where the incoming presidential administration has proposed a plan to establish a strategic bitcoin reserve fund. According to him, "small countries" are likely to be the first to adopt a BTC reserve fund, but China may act quickly when it decides to do so.
What future for BTC?
The idea of a national bitcoin reserve fund has been popularized by promises in Donald Trump's campaign, who suggested that the United States would accumulate one million BTC. Critics of this plan argue that it would only benefit bitcoin holders, potentially driving up prices if the U.S. government buys and holds such an amount of cryptocurrency.
If China and the United States establish a bitcoin reserve fund, the price of BTC is likely to increase significantly. This high demand from the two major economies would create scarcity in the market, driving prices up due to the limited supply of BTC.
In summary, although China has not officially announced a bitcoin reserve, Changpeng Zhao's statement suggests that this could be an inevitable strategic move for the country. The question remains when and how China will decide to take this significant step in the cryptocurrency world.
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