China's Bitcoin Treasury Significantly Outpaces United States Despite Ban
Recent data reveals China possesses nearly double the Bitcoin reserves of the United States, creating a surprising imbalance in national cryptocurrency holdings. According to figures from Jan3, China holds approximately 194,000 BTC while the United States maintains just 112,189 BTC worth about $10 billion as reported by Coinrepublic.
This substantial gap exists despite China's public stance against cryptocurrencies. Chinese authorities banned trading and mining within its borders in 2021, yet have quietly amassed significant Bitcoin reserves behind the scenes.
Most of China's Bitcoin appears to have originated from the 2020 seizure of approximately 195,000 BTC from the PlusToken Ponzi scheme. Rather than selling these assets on the open market, Chinese authorities seemingly transferred them to the national treasury.
The approach shows a two-track strategy where China publicly restricts domestic crypto activity while securing a national position in the asset class. By removing retail investors and miners from the market while keeping seized Bitcoin, Chinese authorities have concentrated digital asset control in government hands.
The United States holds 112,189 BTC valued at approximately $10 billion, putting America at a $7 billion Bitcoin deficit compared to China. Unlike China's centrally controlled holdings, U.S. Bitcoin is likely spread across various government agencies that have seized assets from criminal investigations.
Other nations with notable Bitcoin positions include:
- United Kingdom: 61,000 BTC ($5.3 billion)
- Ukraine: 46,351 BTC ($4.08 billion)
- Bhutan: 13,029 BTC ($1.14 billion)
- El Salvador: 6,089 BTC ($537 million)
China's large reserves give it substantial market influence with holdings representing approximately 1% of all Bitcoin that will ever exist. These holdings provide China with a potential hedge against Western-dominated financial systems and create leverage in trade and technology negotiations.
China's recent economic stimulus announcement could further impact its Bitcoin strategy and global markets. On Wednesday, the government revealed new fiscal and monetary measures aimed at boosting consumption amid trade tensions with the US. Bitcoin has previously responded positively to Chinese stimulus actions, gaining 12.3% last September when China implemented interest rate cuts and reduced bank reserve requirements.
