Crypto markets are on edge with anticipation for the US Bitcoin Reserve, promised in Trump’s Crypto Policy, but is the China Bitcoin Reserve possible?
Industry legend and former Binance CEO Changpeng Zhao (CZ) seems to think so, after recent comments he made at the Bitcoin MENA Conference 2024.
Taking place in the so-called ‘Capital of Capital’, Abu Dhabi, the annual conference organized by Bitcoin Magazine has attracted a sleuth of high-profile figures, including Donald Trump’s Son – Eric Trump, Sheikh Nahayan Mabarak Al Nahyan, CZ, and Justin Sun.
Gm @justinsuntron $TRX #BitcoinMENA pic.twitter.com/WB9RCzeSXu
— Bilal bin Saqib MBE (@Bilalbinsaqib) December 10, 2024
It comes as no surprise that the one big topic on everyone’s minds at the Bitcoin fest is, of course, the upcoming US Bitcoin Reserve – which represents a near mythological moment of hyperbitcoinization for the crypto community.
The idea behind hyperbitcoinization is when Bitcoin is fully mainstreamed by adoption from national governments, which many theorize would trigger an ‘arms race’ as central banks race to beat other countries and create Bitcoin reserves – fuelling an aggressive Bitcoin price rally.
Former Binance CEO CZ Claims China Could Create Bitcoin Reserve
While musing on the mixed relationship between Beijing and Bitcoin, CZ was quick to highlight the very real prospect of a hyperbitcoinization race between the US and China.
“[A Chinese Bitcoin Reserve is] inevitable – they have to do it at some point because it’s the only ‘hard’ asset,” claimed CZ.
“I’d be much less surprised if they accumulate and then announce … They could move really, really fast if they wanted.”
During the discussion, CZ also expressed his hopes that the incoming President Trump would award him a Presidential pardon for the charges that led to his jailing earlier this year.
Are Countries Already Establishing Bitcoin Reserves Secretly?
While many countries have been openly stacking Bitcoin for years, including Bukele’s El Salvador and the small nation of Bhutan, other countries (and US states) have been slowly growing their Bitcoin holdings in silence.
Take the surprising example of the UK, which itself has a complex and somewhat anti-innovation approach to cryptocurrency regulation, Bloomberg revealed earlier this year that the combined value of seized BTC holdings stored by the British National Crime Agency stands at a whopping 61,000 BTC.
However, there are also rumors circulating at Bitcoin MENA that true national reserve accumulation could already be well-underway as nations silently front-run Trump’s crypto policy to get ahead of the game.
This was loosely confirmed by Prince Filipe of Serbia after he mentioned nation-state inflows as a potential explanation for the explosive growth up to $100K over the past 3-months.
“Bitcoin strategic reserves are already happening behind closed doors,” confirmed Prince Filipe.
If this is the case, Bitcoin might only be getting started – stay tuned.
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