China and Bitcoin: Is the attitude changing? CZ reveals possible future

China and Bitcoin: Is the attitude changing? CZ reveals possible future

Changpeng Zhao, known as CZ, former CEO of Binance, the largest cryptocurrency exchange, made a disturbing but fascinating statement at the Bitcoin MENA conference in Abu Dhabi. In the context of China's strict cryptocurrency bans, CZ believes it could create a strategic reserve for Bitcoin (BTC).

While the US and Russia in particular have begun to talk about a potential strategic reserve for Bitcoin, CZ argues that China could follow suit. He says the country will join the growing number of nations that recognize the importance of Bitcoin and start accumulating it as part of their reserves.

"China is likely to be among the countries that will adopt a strategic reserve of Bitcoin, which could be related to the plan proposed by incoming US President Donald Trump and his administration," CZ said. As part of his argument, he pointed out that with the growing global trends towards Bitcoin, it is not surprising that China could be accumulating hidden reserves of the digital asset.

Interestingly, CZ mentioned that although the Chinese government's stance on Bitcoin and cryptocurrencies is difficult to predict due to its lack of transparency, the process of building reserves could start in smaller countries. "Trump has not yet taken office and Bitcoin's strategic reserve has not yet been activated. We'll see what other countries do after Trump takes office and triggers the BTC reserve. But as for China, that's a different chapter," CZ noted.

He further added that China has the ability to change its policies quickly. "I would be surprised if the Chinese government announced something and then actually did it. But I would be much less surprised if it hoarded BTC and then announced it. At some point they have to do it because Bitcoin is the only hard asset we have," concluded CZ.

So how will the situation develop? Can China actually change its stance and start hoarding Bitcoin, or will it stay true to its current bans? Time will tell how the cryptocurrency market and geopolitical factors will evolve in the coming months.

*This is not investment advice.

Coingarage team