Is China Preparing to Build a Bitcoin Reserve?

Changpeng “CZ” Zhao, the former CEO of Binance, shared his thoughts on Chinas potential adoption of Bitcoin as a national reserve. Speaking at the Bitcoin MENA conference in Abu Dhabi, he said smaller countries would likely take the lead. Larger nations, including China, might follow later.

Zhao, who grew up in China, said the country‘s stance on cryptocurrency is hard to predict. He mentioned that the government’s decisions are often not transparent. Still, he called the idea of a Bitcoin reserve “inevitable.” He explained that Bitcoin is the only true “hard” asset, so China might have to adopt it eventually. Zhao added that China might start accumulating Bitcoin quietly before announcing it. He said the country could act quickly if it decided to move in this direction.

Zhaos comments came after U.S. President-elect Donald Trump proposed creating a Bitcoin reserve for the United States. Critics of the plan say it could benefit Bitcoin holders by pushing up prices. Some experts, like former New York Federal Reserve President Bill Dudley, called the idea a bad deal.

After stepping down from Binance in November 2023, Zhao has been focusing on other areas of the crypto industry. He left the company after a plea deal that included a $50 million fine and a ban on running the exchange. Since then, he has worked on supporting Web3 development and promoting education in the blockchain space.

Zhao also spoke about the need for change in the crypto community. He urged people to move away from memecoins, which he said have lost their original fun and humour. In a social media post, he shared his frustration with the memecoin trend, calling it strange and overly hyped.

Memecoins like Dogecoin and Shiba Inu became popular during the 2021 bull market. Social media and endorsements from figures like Elon Musk helped drive their success. But now, more attention is shifting to Bitcoin and projects with real value. Many see memecoins as lacking utility and being driven only by speculation.

Zhao‘s comments highlight a shift in focus for the crypto world. He believes the industry should aim for meaningful innovation instead of short-lived trends. Whether China or other countries choose to build Bitcoin reserves remains to be seen. However, Zhao’s ideas reflect the growing role of cryptocurrency in global financial strategies.