Changpeng Zhao Says It Is ‘Inevitable’ For China To Build BTC Reserves
Former Binance CEO Changpeng “CZ” Zhao said China will likely be one of the countries to adopt a strategic Bitcoin reserve following the plan proposed by the US presidential administration.
Speaking at the Bitcoin MENA conference in Abu Dhabi on December 9, he believed that “small countries” could be the first to accept Bitcoin (BTC) reserves, but the change could happen slowly. The former CEO of Binance added that China's position on crypto was “difficult to predict” due to lack of transparency from the government.
“Trump hasn't taken office yet and the strategic bitcoin reserve hasn't been activated yet, so as soon as that happens, I think we'll see what other countries do,” Zhao said.
Changpeng Zhao speaking at the Bitcoin MENA event in Abu Dhabi on December 9. Source: Cointelegraph
CZ, who grew up in China, said the country could move “truly and quickly” on policies if it wanted to. He said he saw no evidence the government was hoarding bitcoins, but it was “inevitable” to establish a strategic reserve.
“I would be shocked if it happened. [the Chinese government] Announce something and then do it – I wouldn't be too surprised if they got together and announced. […] They have to do it at some point because it's the only ‘hard' property.
Which country was the first to build a BTC reserve?
Establishing a “strategic national bitcoin reserve” is one of the promises President-elect Donald Trump made to an audience at a July crypto conference. Critics of the plan have pointed out that if the US government buys and holds 1 million coins, it will only benefit BTC holders by driving up the price.
Related: Trump's BTC Reserve Plan Will Be a ‘Bad Deal' – Former NY Fed President
Zhao was released from US federal prison in September. He pleaded guilty to violating the country's anti-money laundering laws and served four months.
In the year After stepping down as CEO in November 2023, according to an agreement with Binance, Zhao will not have any involvement in managing or operating the crypto exchange in the future. The criminal charge also restricts him from certain business activities, but Trump has hinted that he may be pardoned after taking office on January 20.
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