Former Binance CEO Changpeng “CZ” Zhao suggested that China may adopt a strategic Bitcoin reserve, potentially following a plan proposed by U.S. President-elect Donald Trump.
Speaking at the Bitcoin MENA conference in Abu Dhabi, Zhao said smaller countries would likely lead the way in adopting Bitcoin reserves, with larger nations, including China, following suit later.
Zhao, who grew up in China, acknowledged the unpredictability of the country’s stance on crypto, citing the government’s lack of transparency. However, he described the establishment of a Bitcoin reserve as “inevitable,” stating, “They have to do it at some point because it’s the only ‘hard’ asset.”
He added that China’s adoption might come without prior announcement: “I’d be much less surprised if they accumulate and then announce […] They could move really, really fast if they wanted.”
Zhao’s remarks come in the wake of Trump’s campaign promise to create a strategic Bitcoin reserve, a move that critics argue could primarily benefit BTC holders by driving up prices if the U.S. government buys and holds large quantities of Bitcoin.
The idea of a national Bitcoin reserve has drawn skepticism from some economic experts, including former New York Fed president Bill Dudley, who labeled the proposal a “bad deal.”
Zhao’s role post-Binance
Zhao hinted at the possibility of a presidential pardon from Trump after his inauguration in January, which could alter his business prospects.
Separately, Binance founder urged the crypto community to move away from the hype surrounding memecoins and focus on creating meaningful blockchain applications.
In a post on X, Zhao wrote he’s frustrated with the memecoin ecosystem, stating that the trend has become “a little” strange, straying from the lighthearted humor that initially defined it.
Memecoins like Dogecoin and Shiba Inu gained popularity during the 2021 bull market, partly fueled by figures like Elon Musk and widespread social media support. However, as market sentiment shifts toward Bitcoin and projects with tangible value, memecoins face increasing scrutiny for lacking utility and being driven purely by hype.
Zhao stepped down from Binance in November 2023 after agreeing to a plea deal that included a $50 million fine and a ban on his involvement in managing or operating the crypto exchange. Since then, he focused on supporting grassroots Web3 development and education, distancing himself from the speculative nature of certain crypto sectors.
