Recently, many people have been saying that the Eastern power should also establish Bitcoin reserves. At first, I thought it was nonsense, as the Eastern power's stance on Bitcoin has always been a strong rejection. However, seeing this statement come from CZ’s mouth, I started to believe it a little.
On December 9, 2024, Binance founder Zhao Changpeng presented a surprising viewpoint at the Bitcoin MENA conference in Abu Dhabi: China may become one of the nations to establish Bitcoin reserves. With the U.S. Bitcoin strategic reserve plan about to be implemented, Zhao's viewpoint is particularly noteworthy. All parties are pondering its possibility and potential impact, and the future direction is filled with suspense and variables, waiting for continuous observation and exploration.
Zhao Changpeng stated that Bitcoin, due to its scarcity and decentralized characteristics, is dubbed 'digital gold' and is increasingly favored by investors. Compared to traditional fiat currencies and financial instruments, its value preservation capability is superior. The Bitcoin reserve strategy is not only a way to hedge against inflation but also a key measure to strengthen national financial security.
Although China's stance on cryptocurrency remains unclear and variable, the trend of building Bitcoin reserves is 'unstoppable.' Once the U.S. genuinely starts the Bitcoin reserve process, it is very likely to lead other countries to follow suit. China will inevitably have to act in this way, as Bitcoin is a unique 'hard asset.' However, before that, smaller countries will take the lead in using Bitcoin reserves to counter inflation and external economic shocks.
Although there is currently no solid evidence that China is hoarding Bitcoin, Zhao Changpeng, who grew up in China, firmly believes that once China decides to act, it can effectively implement relevant policies. He speculates that China may refer to the Bitcoin reserve plan proposed by the Trump administration in the U.S. and is very likely to secretly accumulate a large amount of Bitcoin, formally announcing its strategic plan only when the time is right. This 'quiet' strategy could help China quickly enter the Bitcoin market while other countries remain unaware.
Zhao Changpeng's insights have sparked reflection on the future direction of the world economy: If Bitcoin indeed becomes a global reserve asset, how will the traditional financial system respond to this transformation? How should central banks around the world adjust their monetary policies to align with this emerging asset? These questions remain unresolved, but it can be boldly imagined that the future financial system may be built around Bitcoin, giving rise to a new international monetary system, with countries around the world potentially competing fiercely in this field.
China's attitude towards cryptocurrency
Since 2013, the Chinese government's stance on cryptocurrency has fluctuated from initially being open to later imposing strict crackdowns, and now to a cautious wait-and-see approach.
Initially, China held a relatively open attitude towards Bitcoin and other cryptocurrencies and even became the world's largest Bitcoin trading market. However, as the cryptocurrency market rapidly grew, the Chinese government began to worry about financial risks, money laundering issues, and the risks of capital outflow brought by cryptocurrencies.
In 2017, the Chinese government officially banned cryptocurrency exchanges and ICOs (initial coin offerings) and comprehensively 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, it has strongly promoted the development of blockchain technology at the national level and considers it an important component of the future digital economy.
In 2021, the People's Bank of China launched the digital renminbi (e-CNY) based on blockchain technology, but these digital currencies are still controlled by the central bank, distinguishing them from decentralized cryptocurrencies like Bitcoin.
Recently, although China's stance on cryptocurrency remains relatively conservative, with increasing global attention on Bitcoin and other crypto-assets, the market generally believes that China may reconsider its Bitcoin policy at some point in the future and may adopt a more proactive attitude to respond to market changes.
