CZ Predicts China to Build Bitcoin Reserves Amid US Plans
Changpeng Zhao, widely known as CZ, believes China is preparing to establish strategic Bitcoin reserves. Speaking at the Bitcoin MENA conference on December 9 in Abu Dhabi, the former Binance CEO highlighted a vision that could align with plans from the incoming U.S. administration.
CZ indicated that smaller nations might lead the initiative for Bitcoin reserves, which would occur gradually. However, China's unpredictable stance on cryptocurrencies complicates this outlook due to its government's lack of transparency.
“Trump has not gotten into office yet, and the strategic Bitcoin reserve has not been activated yet, so I think as soon as that actually happens, we’ll see what other countries do,” said CZ.
CZ Predicts Secret Bitcoin Accumulation
Despite uncertainties, CZ, who has Chinese roots, believes quick policy implementation is possible when the government decides to act. He stated that while he lacks concrete evidence of China accumulating Bitcoin, he views the establishment of a strategic Bitcoin reserve as “inevitable.”
CZ expressed skepticism regarding the likelihood of an official announcement preceding action, suggesting that authorities may accumulate assets secretly before making any formal declaration. Eventually, recognition of such assets will be necessary due to their inherent value.
“I’d be shocked if [Chinese government] announced something and then do it — I’d be much less surprised if they accumulate and then announce […] They have to do it at some point because it’s the only ‘hard’ asset,” said CZ.
The concept of countries maintaining Bitcoin reserves gained traction during Donald Trump's campaign when he proposed a national Bitcoin reserve, potentially involving the U.S. acquiring and holding 1 million BTC.
Global Bitcoin Reserves Race Heats Up
Critics argue that such a plan primarily benefits Bitcoin holders, as large-scale purchases could inflate prices. A U.S. move towards a Bitcoin reserve may trigger similar actions from other nations, possibly encouraging China to secure its own reserves.
CZ's predictions emerge during a significant transition period for him. After four months in a U.S. federal prison for violating Anti-Money Laundering laws, he was released in September. In November 2023, he resigned as Binance CEO and severed ties with the exchange.
His legal restrictions limit his business activities, but CZ remains hopeful. He suggested that Trump might consider a presidential pardon after taking office on January 20. Regardless, he maintains confidence in China's eventual decision to pursue a Bitcoin reserve.