March 06, 2025
By Anjali Kochhar
China is reportedly engaging in private discussions about establishing a strategic Bitcoin reserve, sparking intense speculation in the cryptocurrency market. Reports suggest that Chinese officials have been meeting on this topic since the U.S. election, raising questions about a potential shift in China’s long-standing stance on digital assets.
On March 3, 2025, well-known cryptocurrency analyst Crypto Rover claimed that China is planning to lift its ban on Bitcoin and other cryptocurrencies in 2025. Additionally, the country is said to be considering not just Bitcoin but also Ethereum as part of its strategic reserve. If these reports are accurate, it would mark a significant policy reversal, especially considering China’s history of strict cryptocurrency regulations. The country imposed a full ban on crypto trading and mining in 2021, forcing many businesses and miners to relocate. This news has already impacted the global crypto market, leading to sharp price increases across major digital assets.
David Bailey, a respected voice in the cryptocurrency industry, has also supported these claims. According to Bailey, China has been increasing efforts to build a Bitcoin reserve in response to recent geopolitical events. He stated that government officials have been holding private meetings to determine the details of such a reserve. However, no official confirmation has been made. If China moves forward with this strategy, it could significantly impact global cryptocurrency adoption and international financial markets.
The timing of China’s rumoured discussions coincides with growing global interest in national Bitcoin reserves. Recently, U.S. President Donald Trump announced plans for a strategic cryptocurrency reserve, which would include Bitcoin, Ethereum, XRP, Cardano (ADA), and Solana (SOL). Trump also expressed strong support for Bitcoin and Ethereum, recognising their potential as key financial assets. This shift in the U.S. government’s stance on cryptocurrencies could be influencing China’s reported considerations. If China proceeds with its Bitcoin reserve, it could intensify competition between global economic powers over digital asset accumulation.
China’s relationship with Bitcoin has been complex. Despite banning cryptocurrency transactions and mining, reports suggest that the Chinese government has seized large amounts of Bitcoin over the years. In the Plustoken Ponzi scheme case, authorities confiscated nearly 194,775 BTC, worth billions of dollars. However, it remains unclear whether China still holds these assets or if they have been sold.
While some experts argue that China still maintains a significant Bitcoin reserve, others believe the country liquidated these holdings long ago. The secrecy surrounding China’s cryptocurrency policies adds to the uncertainty, leaving the true status of its Bitcoin reserves unknown. As speculation continues, the global cryptocurrency market will be closely watching for any official confirmation or further developments regarding China’s stance on Bitcoin and digital asset reserves.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
