China Bitcoin Holdings: What If It Copies the US Strategy?

As the US moves forward with its Strategic Bitcoin Reserve, there is more and more talk about whether China will respond with its national crypto strategy.

A “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile” were set up by an order signed by US President Donald Trump on March 7. At first, Bitcoin and other digital assets seized in government criminal cases will be used to fund the reserves.

The US has changed its opinion of Bitcoin so China could act to prevent lagging. Bitcoin supporter David Bailey reportedly said that China might be working on a response to Trump’s executive order. There are reports that some cryptocurrency supporters have “orange-pilled” Trump.

Bailey claimed that, although the government has not confirmed this, the country has held private meetings on Bitcoin following the 2024 US election.

Source: David Bailey China Currently Owns: How Much Bitcoin?

If China adopts a Bitcoin reserve strategy, its holdings may be similar to those of the US. The US government currently holds 198,109 BTC, worth over $17 billion.

Bitcoin in the reserve will be handled as a long-term store of value rather than sold; David Sacks, the US AI and crypto czar, confirmed this. The US will instead save value in Bitcoin as a long-term store of value.

Chinese authorities seized almost 195,000 Bitcoin from the PlusToken Ponzi scheme in 2020. The Yancheng Intermediate People’s Court declared that the seized crypto assets should be turned over to the national treasury.

From what CryptoQuant CEO Ki Young Ju said, China might have sold its Bitcoin reserve already. The executive said it seemed doubtful the country would have “censorship-resistant money.

Ju said the coins were taken from the Chinese Communist Party to the government fund, but he omitted to mention whether they were sold or not.

It will become one of the largest Bitcoin holders worldwide if China maintains reserves in line with the US strategy.

US Buying Pushes Countries To Join Bitcoin Game

Jan 3, CEO Samson Mow said in a March 7 X post that although some Bitcoin enthusiasts object since the nation did not acquire Bitcoin immediately, the Strategic Bitcoin Reserve will have a significant impact.

According to Mow, this event is the beginning of a “real race” for countries to embrace Bitcoin.

Source: Jan3

The executive also noted that the US would likely add more Bitcoin to the cache and may not accept losing reserves to China.

Although Beijing’s position on Bitcoin reserves is still unknown, Hong Kong legislators are looking at the possibility of Bitcoin acceptance inside China’s one country, two systems” paradigm.

Member of Hong Kong’s Legislative Council Wu Jiexhuang said on December 30 that Hong Kong should investigate the US market influence of spot Bitcoin exchange-traded funds. The official mentioned how Trump’s intention to designate BTC as a strategic reserve asset might affect conventional markets.