CZ believes China’s establishment of a strategic Bitcoin reserve is “inevitable,” despite the nation’s unpredictable approach to cryptocurrencies.
By Bena Ilyas
Edited by Marco T. Lanz
Updated
3 mins read
Changpeng Zhao, known widely as CZ, believes China is poised to join the ranks of countries building strategic Bitcoin reserves. Speaking at the Bitcoin MENA conference on December 9 in Abu Dhabi, the former Binance CEO discussed this bold vision, suggesting it might mirror plans proposed by the incoming United States administration.
CZ noted that smaller nations would likely lead the charge toward Bitcoin reserves. He mentioned that this process would roll out gradually. However, when it comes to China, things are different. The nation’s approach to cryptocurrencies remains unpredictable, largely due to a lack of transparency within its government.
“Trump has not gotten into office yet, and the strategic Bitcoin reserve has not been activated yet, so I think as soon as that actually happens, we’ll see what other countries do,” said CZ.
Despite the uncertainty, CZ, who grew up in China, believes the country can implement policies quickly when it decides to act. While he hasn’t seen concrete proof that China is stockpiling Bitcoin, he called the establishment of a strategic Bitcoin reserve “inevitable.”
CZ expressed surprise at the notion of the Chinese government making an announcement before acting. He anticipated a scenario where authorities accumulate assets discreetly before any formal acknowledgment. Eventually, officials would need to make a declaration since such assets represent tangible value.
“I’d be shocked if [Chinese government] announced something and then do it — I’d be much less surprised if they accumulate and then announce […] They have to do it at some point because it’s the only ‘hard’ asset,” said CZ.
The idea of countries holding Bitcoin reserves isn’t new. It gained attention when President-elect Donald Trump made it part of his campaign promises. In July, Trump announced his intention to create a national Bitcoin reserve, which could involve the US buying and holding 1 million BTC.
Critics argue this plan primarily favors Bitcoin holders, as such massive purchases could skyrocket prices. However, a US move toward a Bitcoin reserve might prompt other nations to follow suit. That could be the catalyst for China to step up and secure its own reserve.
CZ’s predictions come during a transformative period for him. After serving four months in a US federal prison for violating Anti-Money Laundering laws, he was released in September. In November 2023, he stepped down as Binance CEO and agreed to cut all ties with managing the exchange.
His legal issues also restrict him from certain business activities, but CZ remains optimistic. He hinted that Trump, after taking office on January 20, might offer a presidential pardon. Whether that happens or not, his belief in China’s eventual move toward a Bitcoin reserve remains firm.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
