Image credit: David Claridad

During the Bitcoin MENA conference in Abu Dhabi, Changpeng Zhao (aka CZ), the former CEO of Binance, stated that it is "inevitable" for China to establish a strategic reserve of Bitcoin.

Speaking to a packed audience during a "Fireside Chat" at the Abu Dhabi National Exhibition Centre (ADNEC), CZ shared insights into the potential for China to follow in the footsteps of nations considering Bitcoin as a strategic asset.

CZ noted that while China’s stance on cryptocurrencies remains unpredictable due to the government’s opaque decision-making processes, the nation is likely to accumulate Bitcoin before publicly announcing the establishment of a reserve. He emphasized that China could act "very, very quickly" on such policies once it decides to proceed.

Referencing developments in the United States, CZ drew attention to the proposal by the incoming Donald Trump administration to create a strategic reserve of Bitcoin, further popularizing the idea of national Bitcoin holdings.

Trump’s campaign proposal suggested that the U.S. should accumulate 1 million BTC, which sparked widespread debate over its implications. Critics argue that such a move would benefit current Bitcoin holders by driving up prices as the government buys and holds significant quantities of the cryptocurrency.

CZ explained that smaller countries are more likely to adopt Bitcoin reserves first, but he believes that China, with its swift policy execution capabilities, could follow quickly. He admitted, however, that he had not yet seen concrete evidence of the Chinese government accumulating Bitcoin, though he remains confident it is only a matter of time.

If major economies like China and the U.S. establish Bitcoin reserves, the global cryptocurrency market could experience significant price increases. The resulting scarcity from heightened demand could push BTC prices upward, given the cryptocurrency's finite supply.

As Bitcoin continues to gain recognition as a strategic asset, the actions of global powers like China and the U.S. will likely play a pivotal role in shaping the future of cryptocurrency markets.

‍