With cryptocurrencies playing a growing role in the global financial market, China, which has been restrictive towards digital assets for years, may soon change its strategy. According to Changpeng Zhao, known as CZ, former CEO of Binance exchange, China will inevitably create a strategic reserve of Bitcoin. The plan, presented by Zhao at the Bitcoin MENA conference in Abu Dhabi, is based on the assumption that Bitcoin will become one of the most important reserve assets in the coming decade.
Bitcoin as a Hard Asset
Changpeng Zhao emphasized that Bitcoin is the “only hard asset” that is resistant to inflation and offers high transparency and security thanks to blockchain technology. His prediction is that after smaller countries can create reserves in Bitcoin, China, despite its current aversion to cryptocurrencies, will also decide to do so. Zhao suggests that China, although it currently has restrictions on cryptocurrency trading and mining, will soon start accumulating Bitcoin without prior announcement. “I will be surprised if the Chinese government first announces something publicly and then starts doing it,” Zhao said, indicating that authorities can act quickly and without announcement.
Gold vs. Bitcoin: Global Changes in Currency Reserves
Zhao sees Bitcoin as an alternative to traditional currency reserves like gold. While China and Russia currently hold significant amounts of gold, the future of the investment is uncertain. “Bitcoin is the only hard asset that can protect a country from global financial crises and inflation. It is also an asset that can revolutionize the way countries accumulate foreign exchange reserves,” Zhao noted.
Saylor predicts that a Bitcoin-based strategy could dominate traditional assets. Instead of relying on gold, which is not only expensive to store but also has limited liquidity, Bitcoin offers greater flexibility and accessibility. Accumulating the cryptocurrency would therefore become a step toward greater economic and geopolitical independence.
China and Global Domination of the Financial System
Bitcoin is now seen by many experts as a currency that could replace traditional currency reserves. In turn, the control of a huge amount of Bitcoin by one of the largest countries in the world, such as China, could mean a strong influence on the financial market. Zhao claims that within a few years, Bitcoin will become the main reserve currency, and those countries that understand the potential of this technology will gain an advantage over other countries.
In the context of China, which is one of the largest players in the financial market, its decision to include Bitcoin in reserves could revolutionize the global monetary system. Zhao predicts that the country, despite its current restrictions, would quickly see value in the cryptocurrency.
What does this mean for the global economy?
If China decides to create a state-owned Bitcoin reservoir, it could gain a dominant position in the cryptocurrency market. In particular, control over such a large amount of Bitcoin would give China, and other countries that follow suit, the ability to manipulate global financial markets. Moreover, these actions could increase China’s competitiveness in the international arena, attracting additional investment and providing greater financial stability.
Bitcoin: The Future of Investing
As Bitcoin’s popularity as a safe haven asset grows, investors need to be aware of its growing role in the financial system. Saylor and Zhao’s positive predictions show that Bitcoin is no longer just a speculative tool. The cryptocurrency is becoming increasingly recognized by financial institutions as a foundation for long-term reserves.
Summary: Is Bitcoin the future?
If Zhao and Saylor’s predictions come true and China does indeed decide to introduce Bitcoin to its reserves, it would be a watershed moment in financial history. Bitcoin has the potential to become the new reserve currency, replacing gold and other traditional assets. With governments and financial institutions increasingly interested in the cryptocurrency, the future of Bitcoin seems increasingly bright.