Beijing may be ramping up its efforts to establish a strategic Bitcoin reserve, aligning with its broader push for de-dollarization and economic independence. Recent reports suggest that Chinese authorities are engaging in behind-the-scenes discussions on acquiring and holding Bitcoin as a hedge against Western financial dominance.

China’s Crypto Stance: From Ban to Strategic Reserve?

Since implementing a blanket ban on crypto trading and mining in 2021, China has maintained a firm stance against decentralized digital assets. However, new reports indicate that the country may be shifting its position—at least in terms of state-controlled Bitcoin holdings.

David Bailey, CEO of BTC Inc., claims that Beijing has been hosting a series of closed-door meetings to explore the creation of a Strategic Bitcoin Reserve. This move could be part of China’s broader strategy to reduce reliance on the US dollar, a trend that has already seen the nation increase its gold reserves and promote the use of the yuan in global trade.

Contradictory Moves: Selling and Accumulating BTC

While China appears to be quietly working toward Bitcoin accumulation, it was also reported that the government sold off 194,000 BTC earlier this year—assets originally seized from the infamous PlusToken scam. This raises questions about whether China’s new strategy is to sell off illicitly obtained BTC while accumulating fresh reserves from other sources.

Despite its strict regulations, China still plays a crucial role in the global crypto ecosystem. Before the crackdown, Chinese miners controlled over 70% of the global Bitcoin hash rate. While the industry has largely relocated to more crypto-friendly jurisdictions, some analysts speculate that China could re-enter the mining sector in a state-controlled manner.

Geopolitical Implications of a Chinese Bitcoin Reserve

If China moves forward with this initiative, it could significantly impact the global financial landscape. A state-backed Bitcoin reserve would:

  • Reduce China’s exposure to US financial sanctions by leveraging a decentralized asset.
  • Accelerate Bitcoin’s legitimacy as a global store of value if a major economy actively accumulates BTC.
  • Trigger reactions from the US and other major economies, potentially leading to increased Bitcoin reserves in Western nations as a countermeasure.

The US government currently holds around 198,000 BTC, valued at approximately $18 billion, according to Arkham Intelligence. Meanwhile, US lawmakers are exploring regulatory frameworks that could pave the way for a national digital asset stockpile, signaling that crypto is increasingly seen as a strategic asset.

Will China Unban Bitcoin by 2025?

Crypto analysts, including Crypto Rover, speculate that China may unban Bitcoin by 2025 while formally establishing a state-controlled reserve. If true, this would be one of the most significant policy reversals in recent financial history and could drive Bitcoin demand to new heights.

While Beijing remains tight-lipped, the increasing global adoption of Bitcoin as a hedge against economic uncertainty suggests that China’s involvement—whether direct or indirect—is inevitable.

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