China's Secret Bitcoin Strategy: A Shift in Cryptocurrency Policy and the Race for Global Digital Assets

China's Secret Bitcoin Strategy: A Shift in Cryptocurrency Policy and the Race for Global Digital Assets

China's Bitcoin Strategy: Potential and Uncertainties

China’s potential Bitcoin reserves could reshape global digital asset policy. Competition between the US and China could also drive strategic Bitcoin accumulation worldwide. There is currently uncertainty about the extent of Bitcoin holdings attributed to China.

According to reports, China is in private talks to create a strategic Bitcoin reserve, leading to intense speculation in the cryptocurrency market. These discussions appear to have increased in intensity since the US election, raising questions about China's changing stance on digital assets. This development follows years of regulatory restrictions that have severely restricted Bitcoin trading and mining in the country.

Will China reverse Bitcoin ban?

On March 3, 2025, cryptocurrency analyst Crypto Rover reported that China intends to lift its ban on Bitcoin and other cryptocurrencies in 2025. The plan apparently also includes the creation of a strategic reserve of Bitcoin and Ethereum.

If these claims are true, it would represent a significant policy shift, especially given China's previous opposition to cryptocurrency markets. This potential news had an immediate impact on the global crypto sector, causing significant price increases for major digital assets.

David Bailey, a prominent figure in the cryptocurrency industry, supports these claims, stating that China has intensified its efforts to create Bitcoin reserves in response to geopolitical events. He argues that officials have held private meetings to hammer out the details of such a plan. However, an official confirmation is still pending.

Response to the US Crypto Reserve

China's plan to establish a Bitcoin reserve comes at a time when interest in Bitcoin reserves is also increasing worldwide. US President Donald Trump announced his administration's intention to create a strategic cryptocurrency reserve that includes Bitcoin, Ethereum, XRP, Cardano and Solana. This announcement surprised the crypto community and indicated a shift in US policy regarding digital assets.

Trump has also spoken positively about Bitcoin and Ethereum and highlighted their potential as financial assets. The timing of the rumored talks in China suggests that geopolitical factors could play a role in both countries' decisions. Should China actually move forward with the creation of a national Bitcoin reserve, this could further intensify competition between the two global economic powers when it comes to digital assets.

Uncertainty about China's current Bitcoin holdings

China's history with Bitcoin is complex. Although the country banned cryptocurrency transactions and mining in 2021, the government has reportedly accumulated large amounts of Bitcoin in confiscations from illegal activities.

An example of this is the Plustoken pyramid scheme, where authorities seized almost 194,775 BTC. However, there is no concrete evidence as to whether China continues to hold these assets or whether they have already been sold. While some experts believe that China still has significant Bitcoin reserves, others believe that the country sold off its holdings quite some time ago.

The secrecy surrounding China's cryptocurrency policy adds to the uncertainties. Without official information, the actual amount of Bitcoin China may own remains uncertain.