China's stance on cryptocurrencies remains strictly restrictive. While China officially continues its ban on digital currency operations, rumors persist about the country's potential interest in Bitcoin amid global financial shifts.
China's Cryptocurrency Position
China's relationship with cryptocurrencies has been notably stringent. In 2021, the People's Bank of China declared all cryptocurrency transactions illegal, reinforcing the nation's firm stance against digital currencies. Despite this, discussions persist regarding China's involvement with Bitcoin, particularly concerning its national reserves.
Conflicting Reports on Bitcoin Holdings
Recent statements by Bitcoin advocate Max Keiser suggest that China, along with Russia, is incorporating Bitcoin into its strategic reserves. Keiser asserts that these nations are acquiring Bitcoin to diversify their assets and reduce reliance on the U.S. dollar. Conversely, other reports challenge this claim. In 2019, Chinese authorities seized approximately 194,775 BTC from the PlusToken Ponzi scheme. By January 2025, analyses indicated that these assets were likely sold, with the proceeds transferred to the national treasury. CryptoQuant CEO Ki Young Ju highlighted that the seized Bitcoins were moved to exchanges like Huobi, suggesting liquidation.
Official Silence and Market Implications
The Chinese government has not officially disclosed its current Bitcoin holdings or detailed any strategies regarding cryptocurrency reserves. This lack of transparency fuels speculation and leaves room for varied interpretations. The uncertainty surrounding China’s position contributes to market volatility, as investors react to unverified claims and rumors.
While figures like Max Keiser suggest that China is actively acquiring Bitcoin, substantial evidence points to the contrary, indicating that China may have liquidated significant portions of its cryptocurrency holdings. The absence of official confirmation from Chinese authorities means that the true state of China’s Bitcoin reserves remains uncertain. Investors and market observers should exercise caution and rely on verified information when assessing such claims.
