The trend of large organizations accumulating Bitcoin is growing rapidly. MicroStrategy has just increased its total Bitcoin holdings to 423,650 BTC after an investment of $2.1 billion.
Meanwhile, Riot Platforms has announced the issuance of $500 million in convertible bonds to expand its BTC acquisition activities.
In El Salvador, under pressure from the IMF, the government is adjusting the Bitcoin Law to make the use of Bitcoin voluntary instead of mandatory as before.
CZ predicts that China will join the global Bitcoin reserve race
Former Binance CEO, Changpeng "CZ" Zhao, has shared his views on China's potential to establish a strategic Bitcoin reserve in the future.
At the Bitcoin MENA conference in Abu Dhabi on December 9, Zhao suggested that China may follow a similar path to the plan proposed by the newly elected US president.
Zhao believes that smaller countries may take the lead in using BTC as a strategic reserve asset, although the process will be gradual.
However, he also acknowledged that China's cryptocurrency policy remains unpredictable due to the lack of transparency of its government.
According to CZ, the campaign promise of Donald Trump, the newly elected US president, to build a "strategic national Bitcoin reserve" could have a significant impact on the global adoption of BTC.
Trump's plan includes the US government buying and holding 1 million BTC, but it has been controversial, with some arguing that this could greatly benefit current Bitcoin investors by driving up the price.
The race to accumulate Bitcoin among nations not only reflects the long-term recognition of its value but also signals a major shift in the global financial landscape, where BTC could play a crucial strategic asset role.
CZ SAYS #BITCOIN HAS NO LIMIT TO HOW HIGH IT CAN GO 👀🚀 pic.twitter.com/VvG46TJNQF
— Bitcoin MENA Conference (@bitcoinmenaconf) December 9, 2024
The activation of a strategic Bitcoin reserve under the new administration of President-elect Donald Trump could encourage other countries, including China, to follow suit.
However, Changpeng "CZ" Zhao emphasized that there is currently no evidence that China is accumulating Bitcoin.
Nevertheless, he believes that China establishing a Bitcoin reserve is "inevitable," and he calls Bitcoin the only true "hard" asset in the modern economy.
Zhao, who spent his early years in China, is confident in the country's ability to make policy changes quickly when necessary.
He predicts that China may secretly accumulate Bitcoin before officially announcing its holdings, rather than declaring its intentions early on.
This is a plausible scenario given the cautious approach of the Chinese government towards major financial transitions in the past.
CZ's statements came after he completed a 4-month federal prison sentence in the US in September for violating anti-money laundering (AML) laws.
Previously, in November 2023, CZ stepped down as CEO of Binance and pledged to withdraw from all executive or management roles at the exchange.
Even though he no longer holds a leadership position at Binance, CZ's insights on the potential for major countries to accumulate BTC continue to attract market attention.
If China indeed acts as predicted, this would be a significant turning point in the global digital currency race, with Bitcoin increasingly seen as a crucial strategic asset in national reserves.