Changpeng Zhao, the former CEO of Binance, has offered his thoughts on China’s probable plan to establish a Bitcoin reserve, which he says is “inevitable” in the future. Speaking at the Bitcoin MENA conference in Abu Dhabi on December 9, Zhao stated that while smaller countries may be the first to adopt a Bitcoin reserve, larger ones such as China may follow.
Zhao highlighted the unpredictability of China’s cryptocurrency policy, which is partly attributable to a lack of openness within the government. Despite this, he stressed China’s ability to execute programs rapidly when it wants to. “If China decides to act, they can move really fast,” he said. He noted that, while there is no direct evidence that China is now hoarding Bitcoin, it appears likely that the government will eventually establish a Bitcoin reserve because it is one of the few “hard assets” with long-term worth.
Zhao believed that the Chinese government will likely secretly accumulate Bitcoin before making an official announcement. He wouldn’t be surprised if China covertly stored the asset, only revealing it after they had a large amount.
The conversation also included President-elect Donald Trump’s suggestion that the US administration establish a strategic Bitcoin reserve. If the United States takes such a step, it may cause a ripple effect, pushing other countries, such as China, to follow suit and develop their own Bitcoin reserves. Despite stepping down from Binance and facing legal restrictions on certain commercial activities, Zhao maintains his confidence in the future of cryptocurrency reserves.
