China Will Start Buying Bitcoin to Tackle Trump

YEREVAN (CoinChapter.com) —  President-elect Donald Trump announced plans to create a U.S. Bitcoin reserve, likened to the nation’s oil reserves. This initiative is part of his broader cryptocurrency strategy, aimed at maintaining an edge over global competitors. Speaking to CNBC, Trump stated,

“We don’t want China, or anybody else, to beat us in this.”

The U.S. government already holds around 200,000 Bitcoin from criminal seizures. Historically, these holdings were auctioned. Trump’s plan involves retaining them and expanding the reserve. The BITCOIN Act, introduced by Senator Cynthia Lummis, outlines a proposal to acquire 1 million Bitcoin over five years. These developments coincided with Bitcoin’s price surpassing $100,000, highlighting its growing importance as a national asset.

Is China Building a Strategic Bitcoin Reserve?

Reports suggest China could be acquiring Bitcoin to respond to Trump’s Bitcoin reserve policy. Despite its 2021 ban on crypto mining, Bitcoin mining in China continues, raising speculation about the country’s Bitcoin strategy. Anthony Scaramucci, a former Trump advisor, said,

“China knows Trump is going to be pro and long Bitcoin.”

He made this statement during the Bankless Podcast.

China’s potential interest in a strategic Bitcoin reserve aligns with its capacity to implement policy changes quickly. While no official confirmation exists, experts believe China may see Bitcoin as a way to counter U.S. financial strategies.

Global Interest in Bitcoin Reserves

China and the U.S. are not alone in exploring Bitcoin reserves. Russia is considering creating a strategic Bitcoin reserve to diversify its national assets. Russian lawmakers argue that Bitcoin can reduce reliance on foreign currencies. President Vladimir Putin has also called Bitcoin an alternative to traditional currency reserves, especially after Western governments froze Russian assets in response to the Ukraine conflict.

Moreover, in Switzerland, a proposal to include Bitcoin alongside gold in the Swiss National Bank’s reserves has gained traction. The proposal requires 100,000 signatures for it to advance to a public referendum. Similarly, in Japan, analysts predict that other Asian countries might adopt Bitcoin reserves to remain competitive.

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