Former CEO of Binance, Changpeng Zhao (CZ), stated that China has the potential to become one of the leading countries in building a strategic Bitcoin reserve. This statement was made at the Bitcoin MENA conference in Abu Dhabi on December 9, when Zhao analyzed the future of cryptocurrency in the national reserve strategy of major countries.
Smaller countries lead the way, China could quickly follow
Zhao believes that smaller countries may be the first to experiment with Bitcoin reserves, but this process will be gradual. He also pointed out that China's current stance on cryptocurrency remains very unpredictable due to a lack of transparency from the government.
He emphasized:
"If major countries like the United States actually activate a Bitcoin reserve plan, the chain reaction from other countries, including China, is something to look forward to."
Although there are no clear signs that China is stockpiling Bitcoin, Zhao believes that the likelihood of the country implementing this strategy in the future is very high. He explained:
"China has always had the ability to change policies decisively. If they want to, they can quietly stockpile Bitcoin and announce it after completion."
The United States' Bitcoin reserve plan under Trump
During the election campaign, President-elect Donald Trump committed to building a 'national strategic Bitcoin reserve'. This plan is expected to create a significant boost for Bitcoin's value in the market, but it also faces considerable criticism. Some opinions suggest that this project primarily benefits current investors rather than serving the public interest.
Zhao, who was recently released in September after pleading guilty to violating anti-money laundering laws, stated that he will not participate in the management or operation of any cryptocurrency exchange in the future. However, he hinted that President Trump might grant him a pardon when he officially takes office on January 20, 2024.
Bitcoin – The 'hard' asset of the future
Concluding his speech, Zhao emphasized that Bitcoin is currently the only 'hard' asset with the potential to become an indispensable part of national reserve strategies.
"The question of whether governments will stockpile Bitcoin is no longer 'if', but rather 'when and how'."
China, though still cautious, may take stronger actions as it observes the movements of other powers on the global financial map.
