China Likely To Favor Gold And Cryptocurrencies, Says BlackRock Executive

The undisputed reign of the dollar in global reserves is faltering. In the face of geopolitical tensions and economic sanctions, powers like China are reassessing the security of their sovereign assets. A breaking dynamic is starting, driven by a quest for financial independence and the desire to escape Western leverage. This strategic realignment could permanently reshape the global monetary balance and open a new era for alternative assets such as gold… and bitcoin.

Beijing abandons “Treasuries” for safe-haven assets

Jay Jacobs, Head of Exchange-Traded Products at BlackRock, stated in an interview on CNBC that “geopolitical fragmentation is a mega-force that is redefining global markets for the decades to come”.

This dynamic, exacerbated by the freezing of $300 billion in Russian assets abroad, has convinced several central banks, including China’s, to reduce their exposure to US Treasury bonds. Over the past three to four years, a strategic diversification movement has been underway, aimed at securing sovereign reserves outside any direct Western influence.

This repositioning concretely results in:

• A significant increase in gold purchases by central banks;
• The gradual reduction of “Treasuries” holdings in official portfolios;
• An increased exploration of alternative assets, starting with bitcoin.

Jay Jacobs clarifies:

These decisions aim to consolidate financial independence in a context of prolonged uncertainty.

The Chinese authorities thus favor tangible or decentralized assets, seen as more resistant to political hazards and asset freeze measures.

Bitcoin: the new strategic asset in the face of global instability

Beyond gold, another asset class is gaining importance: bitcoin. According to Jay Jacobs, bitcoin is beginning to “decouple from risk assets” and now adopts a dynamic comparable to gold.

This transformation of the asset, long associated with speculation, reflects institutional recognition of its safe-haven value, especially in fractured economic environments.

Other players confirm this evolution. Alex Svanevik, CEO of Nansen, noted on the social network X (formerly Twitter) on April 21, 2025, that bitcoin is becoming “less Nasdaq, more gold”.

He emphasizes its relative immunity to fluctuations in traditional stock markets. QCP Capital also indicates that bitcoin benefits from “geopolitical fragmentation,” capturing investment flows seeking alternatives disconnected from the American system. This reconfiguration paves the way for an unprecedented strategic role for bitcoin in sovereign portfolios.

As international economic fragmentation intensifies, bitcoin’s appeal could establish itself durably. If Beijing and other major players realize this mutation, bitcoin could move from a speculative asset to a pillar of state reserves. Such a development would redraw the global monetary balance and consolidate the entry of cryptos at the heart of institutional finance.