China’s Secret Bitcoin Reserve: Is a Global Crypto Power Shift Underway?

China is reportedly accelerating efforts to establish a strategic Bitcoin reserve, signaling a major shift in its stance toward cryptocurrencies. This development follows the U.S. government’s recent move to create its own Strategic Bitcoin Reserve, raising questions about a potential global race to accumulate Bitcoin as a national asset.

On March 7, 2025, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve. This reserve will initially be funded using Bitcoin and other digital assets seized in criminal cases. The decision reflects the growing acknowledgment of Bitcoin as a legitimate store of value and an important financial asset.

Following the U.S. announcement, reports have surfaced that China is holding closed-door meetings to explore the creation of its own strategic Bitcoin reserve. David Bailey, CEO of Bitcoin Magazine, revealed that China has been working "double time" on this initiative, with discussions intensifying after the U.S. elections.

Changpeng Zhao (CZ), former Binance CEO, believes China’s Bitcoin reserve is inevitable, as the country recognizes Bitcoin as a hard asset and a hedge against inflation.

China’s Bitcoin holdings are already significant. In 2020, Chinese authorities seized 195,000 BTC from the PlusToken Ponzi scheme. If these holdings have been retained, China is already among the largest state Bitcoin holders, rivaling the U.S. government.

Strategic Implications of a Bitcoin Reserve

A Chinese Bitcoin reserve could have major global consequences, including:

1. De-dollarization Efforts: China has long sought to reduce its reliance on the U.S. dollar. Holding Bitcoin could provide a decentralized, non-sovereign store of value, reducing dependence on U.S. financial systems and sanctions.

2. Geopolitical Tensions: If both the U.S. and China build Bitcoin reserves, it could intensify economic rivalries, leading to a global race for crypto dominance.

3. Market Impact: Speculation suggests that Bitcoin prices could skyrocket if China officially confirms its Bitcoin reserve strategy.

4. Technological Leadership: China could position itself as a leader in the digital asset revolution, competing with the U.S. for influence over global Bitcoin policies.

Despite its strict ban on crypto trading and mining since 2021, China may now be reconsidering its policies to align with national interests. If China officially moves forward with a Bitcoin reserve, it could signal regulatory reforms, Potential adjustments to crypto restrictions and a public perception shift, a shift from anti-crypto sentiment to government-backed Bitcoin accumulation.

If China officially announces a Bitcoin reserve, the crypto market could experience unprecedented price action, and global financial systems may have to adapt to a world where Bitcoin is a state-controlled asset.

With both China and the U.S. entering the Bitcoin game, will this be the beginning of a global digital asset arms race? The next few months could determine the future of Bitcoin as a reserve currency.