China’s Strategic Bitcoin Reserve Efforts

China is rumored to accelerate efforts to establish a Strategic Bitcoin Reserve amidst significant shifts in US crypto regulations.

> “China is now working double time to stand up their own Strategic Bitcoin Reserve,” said David Bailey, CEO of BTC Inc. Bailey mentioned that Beijing has been holding a series of closed-door meetings since the latest election cycle.

Since 2021, China has upheld its ban on domestic crypto trading and mining, causing the country to lose its previous dominance in Bitcoin mining where it once contributed more than 70% of the global hash rate.

Although Chinese authorities have yet to confirm this movement, Bailey claims to have information from “Bitcoiners in Beijing who are engaged in similar work to those in DC.”

This potential strategy aligns with Beijing’s broader initiatives aimed at de-dollarization, involving yuan internationalization, increased gold purchases, and an expansion of the BRICS economic bloc.

Establishing a Bitcoin reserve could offer China a decentralized, non-sovereign store of value, helping to mitigate its dependence on the US dollar and vulnerability to Western financial sanctions.

This rumored initiative stands in contrast to China’s reported Bitcoin sales earlier this year. Crypto Quant CEO Ki Young Ju previously noted that China sold 194,000 BTC, originally seized from the PlusToken scam in 2019.

> 🇨🇳 China sold 194K #Bitcoin already, imo.
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> PlusToken’s seized BTC in 2019 was sent to Chinese exchanges like Huobi. The CCP said it was “transferred to the national treasury” without clarifying if it was sold.
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> A censored regime holding censorship-resistant money feels unlikely.
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> — Ki Young Ju (@ki_young_ju) January 23, 2025

Currently, the US leads in Bitcoin holdings with over 198,000 BTC, valued at approximately $18 billion at current market prices per Arkham Intelligence.

US lawmakers are pushing forward with state-level Bitcoin adoption initiatives, while the Trump administration contemplates a national digital asset stockpile that may include Bitcoin, Ethereum, and other digital assets.