China Bitcoin reserves: What happens if it follows the US playbook?

As the United States moves guardant with its Strategic Bitcoin Reserve, speculation is increasing implicit whether China volition respond with its ain nationalist crypto strategy.

On March 7, US President Donald Trump signed an enforcement order establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” The reserves volition initially beryllium funded utilizing Bitcoin (BTC) and different integer assets seized successful authorities transgression cases.

With the US shifting its stance connected BTC, China whitethorn marque moves to debar falling behind. On March 3, Bitcoin advocator David Bailey, 1 of the Bitcoin supporters credited for “orange-pilling” Trump, said that China whitethorn beryllium moving connected its ain strategy effect to Trump’s enforcement order. 

Bailey said the state has reportedly held closed-door meetings connected Bitcoin since the 2024 US elections, though nary authoritative confirmation has been made.

Source: David Bailey

How overmuch Bitcoin does China presently have? 

If China adopts a Bitcoin reserve strategy, its holdings whitethorn rival those of the US. The US authorities presently holds 198,109 BTC, valued astatine much than $17 billion.

In addition, White House AI and crypto czar David Sacks has said the US volition not merchantability Bitcoin successful the reserve, but volition alternatively dainty it arsenic a semipermanent store of value. The authorities besides intends to instrumentality “budget-neutral strategies” to bargain much Bitcoin. 

China has ne'er officially disclosed its Bitcoin holdings oregon immoderate merchantability strategies.

In 2020, Chinese authorities seized astir 195,000 BTC from the PlusToken Ponzi scheme. A ruling from the Yancheng Intermediate People’s Court stated that profits from the confiscated crypto assets were forfeited to the nationalist treasury.

On Jan. 23, CryptoQuant laminitis and CEO Ki Young Ju speculated that China mightiness person already sold its BTC stash. The enforcement said it’s improbable that the state would clasp “censorship-resistant money.” However, helium noted that this was lone his idiosyncratic opinion.

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Ju said the Chinese Communist Party transferred the coins to the nationalist treasury but did not clarify whether it sold the coins oregon not.

If China inactive holds the reserves and follows the US Bitcoin reserve strategy, the state would beryllium 1 of the largest Bitcoin holders globally. 

List of countries holding Bitcoin. Source: Bitbo

While Beijing’s stance connected Bitcoin reserves remains uncertain, Hong Kong lawmakers are exploring the imaginable for Bitcoin adoption wrong China’s “one country, 2 systems” framework.

On Dec. 30, Wu Jiexhuang, a subordinate of Hong Kong’s Legislative Council, said Hong Kong could survey the marketplace interaction of spot Bitcoin exchange-traded funds successful the US. The authoritative said Trump’s connection to marque BTC a strategical reserve plus mightiness interaction accepted markets. 

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