China Intends to Create a Bitcoin Reserve

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Former Binance CEO Changpeng “CZ” Zhao has proposed that China may consider creating a strategic Bitcoin reserve, possibly following a plan proposed by US President-elect Donald Trump.

Zhao believes that smaller countries will likely take the lead in adopting Bitcoin reserves, with larger nations like China eventually following suit. He acknowledged the uncertainty surrounding China’s stance on cryptocurrency due to the government’s lack of transparency, but argues that establishing a Bitcoin reserve is “inevitable.”

Zhao also mentioned that it is possible for China to suddenly announce their adoption of a Bitcoin reserve without prior warning.

This suggestion by Zhao comes after Trump’s campaign promise to create a strategic Bitcoin reserve, which some critics believe could primarily benefit current BTC holders by increasing the price if the US government purchases and holds a large amount of Bitcoin.

The concept of a national Bitcoin reserve has been met with doubt from economic experts, including former New York Fed president Bill Dudley, who views the proposal as a “bad deal.”