Former Binance CEO Changpeng Zhao predicts that China could enter the Bitcoin reserve competition in response to Trump’s plan to create a national Bitcoin stockpile.
This inspiration has also led various companies to begin purchasing Bitcoin. MicroStrategy recently increased their Bitcoin holdings to 423,650 BTC with a $2.1 billion investment, while Riot Platforms announced a $500 million convertible bond issuance to fund their own Bitcoin acquisitions.
In addition, the government of El Salvador, facing pressure from the International Monetary Fund, is revising a law that would make Bitcoin usage optional instead of mandatory.
However, the nature of China’s government still makes their cryptocurrency policies uncertain, so the process of establishing a Bitcoin reserve may happen gradually.
Zhao also noted that smaller countries may lead the way in adopting Bitcoin reserves, and that Trump’s plan could have a significant impact on global adoption, despite criticism over potentially inflating prices for existing Bitcoin holders.
