China and Bitcoin: CZ Unveils an Inevitable Scenario

During the Bitcoin MENA conference in Abu Dhabi, Changpeng Zhao (CZ), former CEO of Binance, stated that it is “inevitable” for China to establish a strategic reserve of Bitcoin (BTC). CZ emphasized that although China’s position on cryptocurrencies is difficult to predict due to the government’s lack of transparency, it is likely that the country will accumulate bitcoins before officially announcing such a reserve.

Is China secretly accumulating bitcoin?

The former CEO of Binance, Changpeng Zhao, mentioned that he had not yet seen evidence that the Chinese government was accumulating bitcoins, but he insisted that it was only a matter of time before this happens. He added that China could “act very, very quickly” on policies if it wanted to.

CZ explained that China could follow the example of the United States, where the incoming presidential administration proposed a plan to establish a strategic reserve of bitcoin. According to him, “small countries” would likely be the first to adopt a BTC reserve, but China could act quickly once it decides to do so.

What future for BTC?

The idea of a national bitcoin reserve was popularized by the campaign promises of Donald Trump, who proposed that the United States accumulate one million BTC. Critics of this plan suggest that it would only benefit bitcoin holders, likely increasing the price if the U.S. government were to buy and hold such a quantity of cryptocurrency.

If China and the United States establish a bitcoin reserve, the price of BTC would likely increase significantly. This heightened demand from two major economies would create scarcity in the market, pushing prices up due to the limited supply of BTC.

In summary, although China has not yet officially announced a bitcoin reserve, Changpeng Zhao’s statements suggest that this could be an inevitable strategic step for the country. The question remains when and how China will decide to take this crucial step in the world of cryptocurrencies.