What happened?
Former Binance CEO Zhao Changpeng (CZ) recently stated at the Bitcoin Middle East and North Africa (MENA) conference held in Abu Dhabi that China may become one of the countries adopting strategic Bitcoin reserves, following the plan proposed by the soon-to-be-inaugurated Trump.
Although there is currently no direct evidence showing that China is hoarding Bitcoin, CZ believes that establishing Bitcoin reserves is inevitable for China.
Former Binance CEO CZ: China may become a country that establishes Bitcoin reserves.
According to Zhao Changpeng's predictions, China is likely to choose Bitcoin as part of its national reserves, similar to the United States, and this could gradually be realized in the near future.
Zhao Changpeng stated that although the Chinese government remains relatively conservative in its attitude towards cryptocurrencies and lacks regulatory transparency, he has no doubt about the ability to push policies rapidly in China, stating that 'if China is willing, it can act 'very, very quickly' on policy.' Therefore, if China decides to establish Bitcoin reserves, he would not be surprised.
Additionally, he pointed out that Bitcoin is the only 'hard asset,' making it one of the important options for governments of various countries when diversifying reserves.
Hard Asset: Refers to physical assets that have intrinsic value and can withstand inflation or market volatility.
Even though there is currently no direct evidence indicating that the Chinese government is significantly acquiring Bitcoin, Zhao Changpeng still believes that establishing Bitcoin reserves is inevitable for China.
What is China's attitude towards cryptocurrencies?
Since 2013, the Chinese government’s stance on cryptocurrencies has changed multiple times, from initially being open to later cracking down hard, and now to a cautious wait-and-see approach.
Initially, China held a relatively open attitude towards cryptocurrencies like Bitcoin and once became the largest Bitcoin trading market in the world. However, as the cryptocurrency market grew rapidly, the Chinese government began to worry about the financial risks, money laundering issues, and capital outflow risks associated with cryptocurrencies.
In 2017, the Chinese government officially banned cryptocurrency exchanges and ICOs (Initial Coin Offerings), and completely prohibited cryptocurrency trading and mining. Since then, China has repeatedly emphasized its control over the financial market and adopted a stricter regulatory attitude towards cryptocurrencies.
However, despite this, China's attention to blockchain technology has never diminished. In fact, at the national level, it has vigorously promoted the development of blockchain technology, viewing it as an important component of the future digital economy.
In 2021, the People's Bank of China launched the digital yuan (e-CNY) based on blockchain technology, but these digital currencies are still controlled by the central bank, differing from decentralized cryptocurrencies like Bitcoin.
Recently, although China has maintained a relatively conservative stance in the cryptocurrency field, with the global focus on Bitcoin and other crypto assets increasing, the market generally believes that China may reconsider its policy on Bitcoin at some point in the future and may adopt a more proactive attitude to respond to market changes.
Trump administration plans: The United States is also expected to establish Bitcoin reserves.
U.S. President Donald Trump proposed the idea of establishing a 'Bitcoin Reserve' during the 2024 presidential campaign, which has garnered widespread attention.
According to this plan, Trump proposed that the U.S. government include Bitcoin as one of its national reserve assets and may undertake large-scale Bitcoin purchases, ultimately forming a strategic Bitcoin reserve.
This policy is seen as a significant challenge to the traditional financial system, as Bitcoin, being a decentralized digital asset, fundamentally differs from traditional fiat currency systems.
The core purpose of Trump's Bitcoin reserve plan is to use Bitcoin as a 'hard asset' to address the financial instability and inflationary pressures that the U.S. may face in the future.
The scarcity and decentralized characteristics of Bitcoin make it regarded as a store of value against the devaluation of fiat currency. If the U.S. indeed begins to implement this plan, it is expected to have a profound impact on the Bitcoin market, including driving Bitcoin prices to soar and attracting more countries to consider including Bitcoin in their reserve systems.
However, this plan also faces considerable controversy. Critics point out that if the U.S. government were to purchase Bitcoin on a large scale, it could lead to excessive market volatility and affect the financial stability of other countries.
Moreover, due to the high volatility of Bitcoin, some economists believe that including it in national reserves could also increase the financial risks faced by the United States.
Reference materials: cointelegraph, cryptotimes
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