CZ: "China Will Definitely Build a Strategic Bitcoin Reserve"

Former Binance CEO Changpeng Zhao believes that China will soon join the Bitcoin accumulation race, building its own strategic BTC reserve.

Speaking at the Bitcoin MENA conference in Abu Dhabi (UAE) on December 9, former Binance CEO Changpeng Zhao (CZ) predicted that China will soon join the Bitcoin accumulation race, despite many mysteries about the country's cryptocurrency policy.

According to CZ, although small countries may be the pioneers in establishing strategic Bitcoin reserves, a "big guy" like China will certainly not stay out of the game. CZ commented:

"The Chinese government has always acted very quickly and decisively, I believe that establishing a Bitcoin reserve is only a matter of time."

However, CZ also admitted that predicting China's moves in the cryptocurrency field is a difficult problem. Because Beijing has always concealed many of its policies, making it difficult for outside countries to grasp. Instead, he believes that China will probably accumulate Bitcoin in secret first, then officially announce it to the world. CZ shared:

"I would be very surprised if the Chinese government announced it first and then acted. It would be more reasonable for them to accumulate Bitcoin in secret and then make an official announcement. China is forced to do this at some point because Bitcoin is currently the only 'hard' asset that brings sustainable value in the long term."

CZ's above view was made in the context that the upcoming US administration may plan to establish a "national strategic Bitcoin reserve", proposed by new US President Donald Trump during his election campaign. CZ believes that this move will create a domino effect, prompting other countries including China to race in this field.

At the Bitcoin Conference held in August 2024, Donald Trump pledged to establish a national Bitcoin reserve for the US, based on the more than 213,000 BTC currently held by the US Department of Justice as evidence of criminal confiscation.

However, billionaire Mike Novogratz has expressed skepticism about the possibility of President Donald Trump establishing a national Bitcoin reserve during his term. He said the probability of this happening is "very low", because this decision could lead to conflicts between branches of government, causing major obstacles in the implementation process. In addition, Novogratz also believes that the USD does not need any other assets to maintain its role as the global reserve currency.

As reported, after serving a four-month prison sentence in the United States for violating anti-money laundering laws, Changpeng Zhao was released in September 2024. Since then, CZ has been active in many major industry events such as Binance Blockchain Week in late October and most recently Devcon 7 in November 2024.

During his appearances, Zhao shared his vision for the future, affirming that he will continue to be involved in the crypto industry but in an independent capacity, focusing on developing new trends such as DeSci, investing in AI, and founding a personal education project called Giggle Academy.

In addition, he also announced his refusal to return to the position of CEO of Binance and hinted at the possibility of being pardoned by President Donald Trump after taking office in January 2025.

On the Chinese side, despite dominating 55% of the global Bitcoin hashrate, the country has long taken a hard line on cryptocurrencies, viewing them as a potential threat to financial stability. However, the Chinese government recently officially recognized cryptocurrencies as legal property. While the move is not a complete "nod", it also shows that the superpower is gradually loosening its hardline stance on crypto.