{"id":21844,"date":"2025-03-07T19:00:00","date_gmt":"2025-03-07T17:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/will-china-follow-the-us-with-a-strategic-bitcoin-reserve\/"},"modified":"2025-03-07T19:00:00","modified_gmt":"2025-03-07T17:00:00","slug":"will-china-follow-the-us-with-a-strategic-bitcoin-reserve","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/will-china-follow-the-us-with-a-strategic-bitcoin-reserve\/","title":{"rendered":"Will China follow the US with a strategic bitcoin reserve?"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>China is reportedly weighing the creation of a national bitcoin reserve.<\/li>\n<li>The US has already taken such a step, though many observers overestimate the government\u2019s BTC stash.<\/li>\n<li>China\u2019s actual holdings are even murkier.<\/li>\n<\/ul>\n<\/div>\n<p>China is working hard to establish its own Strategic Bitcoin Reserve (SBR), according to Bitcoin Magazine CEO David Bailey.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">China is now working double time to stand up their own Strategic Bitcoin Reserve.<\/p>\n<p>They\u2019ve been holding closed door meetings on the topic since the election.<\/p>\n<p>\u2014 David Bailey?? $0.85mm\/btc is the floor (@DavidFBailey) <a href=\"https:\/\/twitter.com\/DavidFBailey\/status\/1896347493878861867?ref_src=twsrc%5Etfw\">March 2, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He said closed-door meetings among government officials on the topic began after the US election in November 2024.<\/p>\n<p>Responding to accusations of disinformation, Bailey noted that he had reported both the formation of an SBR in the US and the <a href=\"https:\/\/u1f987.com\/en\/news\/donald-trump-pardons-ross-ulbricht\">pardon<\/a> of Silk Road founder Ross Ulbricht before official announcements. As for his sources, he stressed that there are \u201cquite a few die-hard bitcoiners\u201d in Beijing.<\/p>\n<h2 class=\"wp-block-heading\">A potential leader<\/h2>\n<p>On March 6, US president Donald Trump <a href=\"https:\/\/u1f987.com\/en\/news\/trump-establishes-u-s-strategic-bitcoin-reserve\">signed an order<\/a> establishing an SBR. The fund will be built on assets seized by the state. The initiative was one of the politician\u2019s <a href=\"https:\/\/u1f987.com\/en\/news\/donald-trump-becomes-47th-president-of-the-united-states-implications-for-the-crypto-industry\">campaign promises<\/a>.<\/p>\n<p>According to <a href=\"https:\/\/bitcointreasuries.net\/entities\/united-states\">BitcoinTreasuries<\/a>, wallets controlled by US authorities hold 198,109 BTC.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"241\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome-1024x241.jpg\" alt=\"Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome\" class=\"wp-image-253533\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome-1024x241.jpg 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome-300x71.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome-768x181.jpg 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Bitcoin-Treasuries-165-Public-Companies-Private-Businesses-and-Other-Entities-Google-Chrome.jpg 1407w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: BitcoinTreasuries.<\/figcaption><\/figure>\n<p>However, roughly 120,000 BTC should be returned to the Bitfinex exchange. Law enforcement seized the cryptocurrency from hacker Ilya Lichtenstein, who breached the platform in 2016. For 94,643 BTC, US prosecutors have already <a href=\"https:\/\/u1f987.com\/en\/news\/us-authorities-to-return-94643-btc-stolen-from-bitfinex\">sought<\/a> a court ruling.<\/p>\n<p>The Chinese government holds 190,000 BTC, according to the service. The assets are linked to the PlusToken crypto pyramid.<\/p>\n<p>In theory, that sum could make Beijing the biggest state holder of digital gold. Yet as early as 2020, media reported that all cryptocurrencies confiscated from the scam\u2019s organisers had been sold for $4.2bn.<\/p>\n<p>Even so, analysts in subsequent years continued to track movements of some assets seized from PlusToken, <a href=\"https:\/\/u1f987.com\/en\/news\/plustoken-transfers-7000-eth-to-exchanges\">for example, Ethereum<\/a>.<\/p>\n<p>In January 2025, CryptoQuant CEO Ki Young Ju nonetheless suggested that China had disposed of all cryptocurrencies via Chinese exchanges such as Huobi.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">?? China sold 194K <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> already, imo.<\/p>\n<p>PlusToken&#8217;s seized BTC in 2019 was sent to Chinese exchanges like Huobi. The CCP said it was &#8220;transferred to the national treasury&#8221; without clarifying if it was sold.<\/p>\n<p>A censored regime holding censorship-resistant money feels unlikely. <a href=\"https:\/\/t.co\/ODHD9rSR0d\">pic.twitter.com\/ODHD9rSR0d<\/a><\/p>\n<p>\u2014 Ki Young Ju (@ki_young_ju) <a href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1882328830649799039?ref_src=twsrc%5Etfw\">January 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The expert noted that the <span data-descr=\"Communist Party of China\" class=\"old_tooltip\">CPC<\/span> said the assets were \u201ctransferred to the national treasury\u201d without specifying whether they were converted to fiat.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA regime committed to censorship holding censorship-resistant money. That seems unlikely,\u201d the head of CryptoQuant stated.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Who is next?<\/h2>\n<p>The third-largest state bitcoin holder is the United Kingdom with 61,000 BTC. The authorities have made no official statements about forming an SBR.<\/p>\n<p>Ukraine, according to BitcoinTreasuries, holds 46,351 BTC. But both the reliability of this information and the status of the assets are unclear.<\/p>\n<p>Bhutan and El Salvador have confirmed bitcoin reserves of 10,635 BTC and 6,103 BTC, respectively.<\/p>\n<p>The Latin American country recognised the first cryptocurrency as legal tender in September 2021. In recent months El Salvador\u2019s authorities have come <a href=\"https:\/\/u1f987.com\/en\/news\/el-salvador-revises-bitcoin-strategy-following-imfs-directive\">under pressure<\/a> from the <span data-descr=\"International Monetary Fund\" class=\"old_tooltip\">IMF<\/span>. The international body is demanding significant adjustments to the bitcoin strategy under a $1.4bn credit-line agreement.<\/p>\n<p>German authorities <a href=\"https:\/\/u1f987.com\/en\/news\/germany-reveals-proceeds-from-bitcoin-sale\">sold off 49,858 BTC<\/a> in an emergency sale in the summer of 2024, raising \u20ac2.6bn ($2.88bn). The assets were those <a href=\"https:\/\/u1f987.com\/en\/news\/german-authorities-seize-nearly-50000-btc-from-pirates\">seized<\/a> from the Movie2k piracy portal in January. At the time, they were worth about $2.17bn.<\/p>\n<p>The liquidation was <a href=\"https:\/\/u1f987.com\/en\/news\/german-bundestag-criticizes-governments-bitcoin-sale\">criticised<\/a> in the Bundestag. The assets could have formed the basis of an SBR for Germany\u2014or even the EU. Calls to create a reserve emerged both <a href=\"https:\/\/u1f987.com\/en\/news\/former-finance-minister-advocates-for-cryptocurrency-reserves-in-germany-and-europe\">in Germany<\/a> and in <a href=\"https:\/\/u1f987.com\/en\/news\/european-parliament-member-advocates-for-bitcoin-reserve\">the European Parliament<\/a>.<\/p>\n<p>However, the confiscated bitcoins were held by the authorities of the federal state of Saxony. Under local law, the time frame for holding seized assets is limited, and the sale simply proceeded under the rules, <a href=\"https:\/\/u1f987.com\/en\/news\/german-bitcoin-sales-clarified-by-expert\">explained<\/a> Lennart Ante, co-founder and CEO of Blockchain Research Lab.<\/p>\n<p>Russia\u2019s State Duma <a href=\"https:\/\/u1f987.com\/en\/news\/russian-cryptocurrency-reserve-not-yet-on-the-agenda-says-deputy-gorelkin\">said<\/a> that creating a national reserve \u201cis not yet being discussed\u201d at the state level. Officially, the country does not hold the first cryptocurrency.<\/p>\n<p>Jan3 CEO Samson Mow is convinced that in the SBR \u201crace\u201d launched by the United States, state purchases of digital gold are inevitable. Actions by Russia in this direction \u201chave important significance,\u201d he added, citing his own sources.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Some Bitcoiners are saying the Strategic Bitcoin Reserve doesn\u2019t do anything because it\u2019s just seized assets and there\u2019s no buying. <\/p>\n<p>Well, there will be buying. There are a number of \u201cbudget neutral\u201d ways to acquire Bitcoin such as issuing <a href=\"https:\/\/twitter.com\/hashtag\/BitcoinBonds?src=hash&#038;ref_src=twsrc%5Etfw\">#BitcoinBonds<\/a> or selling gold. Give it\u2026 <a href=\"https:\/\/t.co\/zBxYhQwMZ8\">pic.twitter.com\/zBxYhQwMZ8<\/a><\/p>\n<p>\u2014 Samson Mow (@Excellion) <a href=\"https:\/\/twitter.com\/Excellion\/status\/1897901204761723183?ref_src=twsrc%5Etfw\">March 7, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Mow also believes the United States will not want to cede dominance in the sector and will increase the size of its SBR by acquiring more bitcoin.<\/p>\n<p>Analysts have <a href=\"https:\/\/u1f987.com\/en\/news\/experts-optimistic-about-industry-prospects-following-us-crypto-reserve-creation\">welcomed<\/a> the bitcoin industry\u2019s prospects amid the creation of the US crypto reserve.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China is reportedly weighing the creation of a national bitcoin reserve. The US has already taken such a step, though many observers overestimate the government\u2019s BTC stash. China\u2019s actual holdings are even murkier. China is working hard to establish its own Strategic Bitcoin Reserve (SBR), according to Bitcoin Magazine CEO David Bailey. China is now [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1641,133,1150,26],"class_list":["post-21844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-reserves","tag-china","tag-news-plus","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"85","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=21844"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/21843"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=21844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=21844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=21844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}