2024-12-11 14:06 |
Speaking at the Bitcoin MENA conference in Abu Dhabi on Dec. 9, Zhao suggested that smaller countries would likely lead the charge in adopting national Bitcoin reserves, but larger players like China would inevitably follow.
CZ at Bitcoin Mena, Source: X
Zhao acknowledged the opacity of the Chinese government, making its stance on crypto difficult to forecast. “China’s policies are hard to predict due to a lack of transparency,” he said. Despite this, Zhao emphasized the country’s capacity for rapid policy shifts when it chooses to act.
China’s Potential ApproachZhao speculated that China might quietly accumulate Bitcoin before making any formal announcements. “I’d be shocked if [the Chinese government] announced something and then did it,” Zhao remarked. “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.”
While Zhao noted no clear evidence that China has started amassing Bitcoin, he expressed confidence that the nation would eventually adopt a strategic reserve to stay competitive in a global shift toward digital assets.
Influence of U.S. Bitcoin Reserve PlansZhao’s comments come amid speculation about the potential for national Bitcoin reserves to become a global trend. The idea gained traction when President-elect Donald Trump proposed a strategic U.S. Bitcoin reserve during his campaign. Trump pledged to build a national stockpile, a move critics argue could primarily benefit existing BTC holders by driving prices higher. The plan, however, has yet to be activated, as Trump doesn’t take office until Jan. 20.
Zhao suggested that China and other nations would closely watch the U.S. initiative before making their own moves. “Once [Trump’s reserve plan] actually happens, we’ll see what other countries do,” Zhao said.
CZ’s Current Role and RestrictionsZhao’s insights come as he steps back from direct involvement in Binance following legal challenges. The former CEO pleaded guilty to violating U.S. Anti-Money Laundering laws and served a four-month sentence before being released in September. As part of his settlement, Zhao agreed not to participate in managing Binance and faces restrictions on certain business activities. However, he hinted that a presidential pardon from Trump might be a possibility after Jan. 20.
As Bitcoin continues to gain traction as a strategic asset, Zhao’s assertion that China will eventually establish a Bitcoin reserve reflects broader trends in crypto adoption among nation-states. Whether China moves sooner or later, the concept of Bitcoin as a “hard” national asset appears to be gaining global momentum.
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