- China’s potential Bitcoin reserve could reshape global digital asset policies.
- U.S.-China competition may drive strategic Bitcoin accumulation worldwide.
- Uncertainty surrounds the scale of Bitcoin holdings attributed to China.
China is reportedly holding private discussions about creating a strategic Bitcoin reserve, which is causing intense speculation in the cryptocurrency market. Reports indicate that government officials have been meeting on this topic since the U.S. election.
This raises questions about China’s changing stance on digital assets. This development follows years of regulatory restrictions that severely limited Bitcoin trading and mining in the country.
Will China Reverse Bitcoin Ban?
On March 3, 2025, Crypto Rover, a well-known cryptocurrency analyst, reported that China intends to lift its ban on Bitcoin and other cryptocurrencies in 2025.
Moreover, the country is said to be considering a strategic reserve of Bitcoin and Ethereum.
China Policy Reversal Would Be a Major Shift
If these claims are true, it would be a major policy shift, especially given China’s past opposition to cryptocurrency markets. This news immediately affected the global crypto sector, leading to sharp price increases across major digital assets.
David Bailey, a respected figure in the cryptocurrency industry, supported these claims. He said that China has increased efforts to build its Bitcoin reserve as a reaction to geopolitical events.
He mentioned that officials have been holding private meetings to figure out the details for such a plan. However, there has been no official confirmation of these claims.
US Crypto Reserve and China’s Potential Response
China’s possible plans come as there is growing global interest in Bitcoin reserves. U.S. President Donald Trump announced his administration’s intention to create a strategic cryptocurrency reserve, including Bitcoin, Ethereum, XRP, Cardano (ADA), and Solana (SOL). This announcement surprised the crypto community and indicated a shift in U.S. policy on digital assets.
Related: China vs. Trump Tariffs: Global Markets Shaken, Crypto Beckons
Trump further voiced strong backing for Bitcoin and Ethereum, pointing out their potential as financial assets. The timing of China’s rumored discussions suggests that geopolitical factors might be influencing the decision. If China moves forward with a national Bitcoin reserve, it could increase competition among global economic powers in accumulating digital assets.
Uncertainty Around China’s Current Bitcoin Holdings
China’s history with Bitcoin has been complicated. Even though it banned cryptocurrency transactions and mining in 2021, the government has reportedly seized large amounts of Bitcoin from illegal activities.
Some of these assets came from the Plustoken Ponzi scheme, where authorities confiscated nearly 194,775 BTC. However, there is no solid evidence showing if China still holds these assets or if they have been sold off.
Related: Bitcoin Price Jumps 8% as US Strategic Crypto Reserve Plan Offsets China Stock Concerns
While some experts argue that China still has significant Bitcoin reserves, others believe the country sold off these holdings a long time ago. The secrecy surrounding China’s cryptocurrency policies makes the situation even more uncertain. Without official confirmation, the real amount of Bitcoin China owns remains unknown.
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