China May Follow US Bitcoin Reserve Strategy as BTC Surges

As the United States moves forward with its Strategic Bitcoin Reserve, speculation is growing over whether China will respond with its own national crypto strategy. On March 7, the U.S. President signed an executive order establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” The reserves will initially be funded using Bitcoin (BTC) and other digital assets seized in government criminal cases. With the U.S. shifting its stance on BTC, China may make moves to avoid falling behind. On March 3, Bitcoin advocate David Bailey, one of the Bitcoin supporters credited for influencing the U.S. President, said that China may be working on its own strategy response to the executive order. Bailey said the country has reportedly held closed-door meetings on Bitcoin since the 2024 U.S. elections, though no official confirmation has been made.

If China adopts a Bitcoin reserve strategy, its holdings may rival those of the U.S. The U.S. government currently holds 198,109 BTC, valued at more than $17 billion. In addition, the U.S. government has stated that it will not sell Bitcoin in the reserve, but will instead treat it as a long-term store of value. The government also intends to implement “budget-neutral strategies” to buy more Bitcoin. China has never officially disclosed its Bitcoin holdings or any sale strategies. In 2020, Chinese authorities seized nearly 195,000 BTC from the PlusToken Ponzi scheme. A ruling from the Yancheng Intermediate People’s Court stated that profits from the confiscated crypto assets were forfeited to the national treasury. On Jan. 23, CryptoQuant founder and CEO Ki Young Ju speculated that China might have already sold its BTC stash. The executive said it’s unlikely that the country would hold “censorship-resistant money.” However, he noted that this was only his personal opinion. Ju said the Chinese Communist Party transferred the coins to the national treasury but did not clarify whether it sold the coins or not. If China still holds the reserves and follows the U.S. Bitcoin reserve strategy, the country would be one of the largest Bitcoin holders globally.

While Beijing’s stance on Bitcoin reserves remains uncertain, lawmakers are exploring the potential for Bitcoin adoption within the “one country, two systems” framework. On Dec. 30, a member of the Legislative Council said the region could study the