China Could Embrace Bitcoin Reserves, Says Former Binance CEO CZ

At the Bitcoin MENA conference in Abu Dhabi on Dec. 9, former Binance CEO Changpeng “CZ” Zhao shared his thoughts on the possibility of China adopting a strategic Bitcoin reserve.

He suggested smaller nations might take the lead in this move, but larger economies like China could follow, albeit at a slower pace. Zhao acknowledged the unpredictability of China’s crypto stance due to the opaque nature of its government policies.

Zhao, who grew up in China, emphasized the country’s capacity to implement rapid policy changes when necessary. While he noted no clear evidence that China has been stockpiling Bitcoin, he deemed it “inevitable” that they would create a Bitcoin reserve. According to Zhao, such a move aligns with the appeal of Bitcoin as a “hard asset.” He speculated that if China were to act, it might quietly accumulate Bitcoin before making any public announcements.

The idea of a national Bitcoin reserve has gained traction, particularly in the United States, where President-elect Donald Trump included it in his campaign promises. Critics argue this plan could primarily benefit current Bitcoin holders by driving up its price if the government were to acquire a significant supply of the cryptocurrency.

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Zhao also hinted at his own future prospects, mentioning the possibility of a presidential pardon from Trump once he takes office in January. This follows Zhao’s release from U.S. federal prison in September after serving a four-month sentence for violating Anti-Money Laundering laws. As part of his agreement upon stepping down as Binance CEO in November 2023, Zhao is barred from participating in the exchange’s management or operations.

Kosta Gushterov