**China Steps Up Efforts to Create Its Own Bitcoin Reserve Following Trump’s U.S. Crypto Reserve Announcement**
In light of U.S. President Donald Trump’s recent announcement regarding a U.S. crypto reserve, China is reportedly intensifying its initiatives to establish a strategic Bitcoin reserve. Trump’s plan, which includes major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), has sparked optimism in the market. However, analysts are urging caution, noting the absence of concrete actions and the possibility of a market correction.
David Bailey, CEO of Bitcoin Magazine, has indicated that Chinese officials have been engaging in “closed-door meetings” to devise their strategy, suggesting a new chapter in the country’s Bitcoin accumulation efforts. “China is now working double time to establish their own Strategic Bitcoin Reserve. They’ve been holding closed-door meetings on the topic since the election,” Bailey shared on X (formerly Twitter).
Bailey, a prominent figure in the crypto community, informed his followers that discussions among Chinese officials about forming a Bitcoin reserve have gained traction since the 2024 U.S. election, particularly following Trump’s announcement. He noted that China is accelerating its efforts in response to developments in the U.S. While he did not reveal specific sources, he highlighted the strength of his connections within the crypto space, which have provided insights into China’s renewed focus on Bitcoin.
Trump’s crypto reserve plans have generated significant global interest, especially with the inclusion of specific digital assets like XRP and SOL. This announcement responds to increasing calls for the U.S. to establish a strategic reserve that incorporates digital assets, potentially reshaping the crypto market landscape.
The regulation of Bitcoin in China has been complex, with the government previously seizing and regulating Bitcoin holdings. Although China was once a leader in Bitcoin mining, the activity was banned in 2021 to support the central bank’s digital currency. Nevertheless, reports have emerged this year regarding China holding substantial amounts of Bitcoin, particularly in connection with the Plustoken Ponzi scheme, which involved 195,000 BTC.
The notion that China may be building its own Bitcoin reserve is bolstered by the belief that much of the Bitcoin confiscated over the years remains under Chinese control. However, the specifics of these holdings are still uncertain, leading to questions about whether the Chinese government retains these assets or has sold them off. Bailey’s earlier comments suggest that President Xi Jinping’s perspective on Bitcoin may be evolving, indicating a potential shift in strategy.
