Against the backdrop of the booming global cryptocurrency market, on December 9, 2024, Binance founder Zhao Changpeng presented a stunning viewpoint at the Bitcoin MENA conference in Abu Dhabi: China may become one of the countries establishing Bitcoin reserves. In the context of the upcoming implementation of the US Bitcoin Strategic Reserve Plan, Zhao Changpeng's viewpoint is particularly noteworthy. All parties are considering its possibilities and potential impacts, and the future direction is full of suspense and variables.
Zhao Changpeng stated that Bitcoin, known as "digital gold" due to its scarcity and decentralized characteristics, is increasingly favored among investment groups. Compared to traditional legal tender and financial instruments, its value preservation efficiency is more outstanding. The Bitcoin reserve strategy is not only a way to resist inflation, but also a key measure to strengthen national fiscal security.
Although China's attitude towards the cryptocurrency field is still uncertain and subject to change, the trend of building Bitcoin reserves is unstoppable. Once the United States truly initiates the Bitcoin reserve process, it is highly likely to lead other countries to follow suit. If you are interested in American politics, you must know that Trump had already made it clear during his previous presidential campaign that he would support Bitcoin!The inflation caused by the large amount of US dollars printed in the United States recently seems to be less severe! But the price of Bitcoin is skyrocketing! Did all the hot money be invested in Bitcoin?
The Chinese government is well aware that Bitcoin is a unique 'hard asset'. However, before that, smaller countries will first utilize their Bitcoin reserves to counteract inflation and external economic fluctuations.
Although there is currently no concrete evidence for China's hoarding of Bitcoin, Zhao Changpeng, who grew up in China, firmly believes that once China decides to take action, it can efficiently implement relevant policies. He speculated that China may refer to the Bitcoin reserve plan proposed by the Trump administration in the United States, and is highly likely to secretly accumulate a large amount of Bitcoin first, and then officially announce its strategic plan to the outside world when the time is ripe. This' silent 'strategy can help China quickly enter the Bitcoin market without being noticed by other countries.
Today's people's reflections on the future direction of the world economy: If Bitcoin really becomes a global reserve asset, how will the traditional financial system respond to this change? How should central banks of various countries adjust their monetary policies to fit this emerging asset? These questions are still inconclusive, but it can be boldly anticipated that the future financial system may be built around Bitcoin, giving rise to a new international monetary system, and countries around the world may also engage in intense competition in this field. In the future, gold and Bitcoin may go hand in hand and become the mainstream direction of the monetary system!
China's attitude towards cryptocurrency
Since 2013, the Chinese government's stance on cryptocurrency has changed multiple times, from initial openness to later strong suppression, and now to cautious observation.
At first, China held a relatively open attitude towards cryptocurrencies such as Bitcoin and once became the world's largest Bitcoin trading market. However, with the rapid growth of the cryptocurrency market, the Chinese government has begun to worry about the financial risks, money laundering issues, and capital outflow risks brought by cryptocurrencies.
In 2017, the Chinese government officially banned cryptocurrency exchanges and ICOs, and completely banned cryptocurrency trading and mining. Since then, China has repeatedly emphasized its control over financial markets and adopted a stricter regulatory attitude towards cryptocurrencies.
However, despite this, China's attention to blockchain technology has never diminished, and it has even vigorously promoted the development of blockchain technology at the national level, viewing it as an important component of the future digital economy.
In 2021, the People's Bank of China launched e-CNY based on blockchain technology, but these digital currencies are still controlled by the central bank, which is different from decentralized cryptocurrencies such as Bitcoin.
Recently, although China has maintained a relatively conservative stance in the field of cryptocurrency, with the increasing global attention on cryptocurrencies such as Bitcoin, the market generally believes that China may reconsider its policy towards Bitcoin at some point in the future and may adopt a more proactive attitude to respond to market changes.
Trump government plan: the United States is also expected to establish Bitcoin reserves
US President Donald Trump put forward the idea of "building a Bitcoin Reserve" during the 2024 presidential election, which attracted wide attention.
According to this plan, Trump proposed that the US government should include bitcoin as one of its national reserve assets, and may carry out large-scale bitcoin purchases, ultimately forming a strategic bitcoin reserve.
This policy is considered a major challenge to the traditional financial system, as Bitcoin, as a decentralized digital asset, is fundamentally different from the traditional fiat currency system.
The core purpose of Trump's Bitcoin Reserve Plan is to use Bitcoin as a "hard asset" to deal with the financial instability and inflationary pressure that the United States may face in the future.
The scarcity and decentralized nature of Bitcoin make it seen as a hedging tool against the depreciation of fiat currency. If the United States really starts implementing this plan, it is expected to have a profound impact on the Bitcoin market, including driving up Bitcoin prices and attracting more countries to consider including Bitcoin in their reserve systems.
However, this plan also faces a lot of controversy. Critics point out that if the US government were to acquire Bitcoin on a large scale, it could trigger excessive market volatility and have an impact on the financial stability of other countries.
In addition, due to the high volatility of Bitcoin, some economists believe that including it in national reserves may also increase the financial risks faced by the United States.
Leave a comment