According to Changpeng Zhao, former CEO of Binance, China's establishment of a strategic Bitcoin reserve fund appears to be inevitable.
Speaking at the Bitcoin MENA Conference in Abu Dhabi on December 9, Changpeng "CZ" Zhao said that China is likely to join the race to build a strategic Bitcoin reserve fund, a potential trend that may follow similar proposals from the upcoming U.S. administration.
Zhao noted that while smaller countries may take the lead in establishing Bitcoin reserve funds, the process will be slow and cautious. He also assessed China's stance on cryptocurrencies as highly unpredictable due to a lack of transparency in government policy.
He said that China's cryptocurrency policy could change "very quickly" and "very unexpectedly". Although there is no specific evidence that Beijing is accumulating Bitcoin, Zhao affirmed that China's establishment of a strategic Bitcoin reserve fund is inevitable. According to him, Bitcoin is the only asset that can provide long-term stability and value, making China's participation in this trend a matter of time. Zhao speculated that China may quietly accumulate Bitcoin before publicly disclosing this information.
He also cited the proposed strategic national Bitcoin reserve fund of President-elect Donald Trump from July this year as a notable precedent. If this plan is implemented, it will have a significant impact on the cryptocurrency market, particularly the price of Bitcoin, if the U.S. government decides to purchase and hold a large amount of this currency. However, some opinions suggest that this move will only benefit the current Bitcoin investors.
For his part, Zhao was released in September after serving a 4-month prison sentence for violating anti-money laundering regulations in the U.S. After resigning as CEO of Binance in November 2023, Zhao reached an agreement with the exchange, under which he will not participate in any management or operational activities. Legal issues have also limited his involvement in some other business areas, although Zhao hinted at the possibility of being pardoned by President Trump after he takes office on January 20.
