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Super crazy prediction! Binance's CZ: China may reserve BTC, digital gold battle will begin?
Zhao Changpeng (CZ) predicts that China may reserve Bitcoin
According to Cointelegraph, Changpeng Zhao (CZ), the former CEO of Binance, stated at the BTC MENA conference in Abu Dhabi that China may follow Donald Trump's proposal to have BTC reserves and become one of the countries with BTC strategic reserves.
CZ, who is extremely familiar with the Chinese market, believes that although there is currently no evidence to suggest that the Chinese government is hoarding BTC, they will eventually take action.
CZ pointed out that the Chinese government has always been known for its fast decision-making, but due to lack of transparency, its Crypto Assets policy is difficult to predict.
He is more straightforward:
"If they announce first and then take action, I would be very surprised. I believe they may be more likely to accumulate silently first and then announce."
He emphasized that BTC, as the only 'hard asset', will eventually become the choice for national strategic reserves. The original term for 'hard asset' is Hard Asset, which originally refers to assets that have physical existence, are not easily destroyed, and are less affected by economic cycles, such as precious metals and energy. The fact that BTC is regarded as a hard asset reflects CZ's confidence in its role as a new value reserve asset.
Image source: Former CEO of Binance, Changpeng Zhao (CZ), participated in the BTCMENA event in Abu Dhabi.
The US Treasury Department has officially established BTC as digital gold
"Encryption City" previously reported that in the latest report of the US Treasury Department, BTC was explicitly positioned as "digital gold" for the first time. The report pointed out that in the DeFi ecosystem, BTC is gradually playing a role similar to traditional gold and has become a store of value asset.
The fact that BTC has received "national recognition" in the United States not only shows that major countries are beginning to take cryptocurrency seriously, but also provides investors with new options.
The US Treasury Department emphasizes that although BTC still has speculative characteristics, its anti-inflation and hedging properties are increasingly evident. It is worth noting that BTC's market capitalization has grown rapidly from US$6.4 million in 2015 to the current US$2.3 trillion, and has recently broken through the $100,000 mark for the first time.
The report also points out that Stable Coin is another rapidly growing digital asset, with approximately $1.2 trillion in value of Stable Coin collateral funds invested in US bond-related assets. Not only does it provide Liquidity to the cryptocurrency market, but it also indirectly consolidates the core position of US bonds in the global financial system.
Extended Reading: National level recognition! US Treasury: BTC is digital gold, the trend of transmitting gold + Block chain is coming
Will the US BTC Strategic Reserve be realized? Former Treasury Secretary: Too crazy
According to CryptoSlate, former US Treasury Secretary Larry Summers bluntly stated in an interview with Bloomberg that the idea of establishing a national Bitcoin reserve is "crazy".
He questioned, "Among all the possible reserve assets, why would the government choose to hoard a bunch of 'unproductive' BTC?"
Despite facing expert scrutiny, this policy proposal is gradually gaining more support from political figures.
Since Trump proposed the BTC strategic reserve, several states in the United States have started discussing related legislation. For example, Texas and Pennsylvania are considering establishing state-level BTC funds, and politicians in Brazil and Poland are also promoting similar proposals.
Extended Reading: Is Trump's move too effective? The Polish presidential candidate also shouted: if elected, Bit will be used as a reserve!
Currently, the concept of treating BTC as a national strategic reserve is still in the exploratory stage. The report of the US Treasury Department also emphasizes that the development of the encryption asset market is still in the early stage, and its scale is far from that of TradFi and physical assets.
However, the potential of improving the settlement and clearing procedures in the financial market through blockchain technology has already attracted attention to encryption assets from all walks of life.
If BTC national strategic reserves can become a trend, it is expected that in the future, countries will compete for "digital gold", and as Cryptocurrency becomes more recognized, the road to the mainstream may not be far away.
"Super crazy prediction! Binance's CZ: China may be hoarding BTC, and the digital gold rush will begin?" This article was first published in "encryption city".