Analysts are questioning a recent revelation about the countries that have substantial crypto holdings, and debate is now raging over whether evidence exists to show that China owns Bitcoin.
The ongoing debate on whether China owns Bitcoin follows a post on X by a “Finance Guy ” user,” showing a list of countries and companies and the amount of Bitcoin holdings listed on their balance sheets. According to the data shown in the post, China possessed at least 194,000 Bitcoins, and now analysts want evidence to support the findings.
Social Media Users Ask for Tangible Evidence
According to some keen observers, the statistics on the chart didn’t look current since the latest records from other sources showed quite different statistics. User Sani cited the figures showing the amount of Bitcoin MicroStrategy currently holds, meaning that the “Finance Guy” could be those of May 2024.
In asking for hard facts about some of those figures, Sani stated that “China and Ukraine don’t own anything,” adding that Ukraine exchanged its BTC holdings for fiat currency to support its ongoing war with Russia.
Reports indicate that as of July 2024, several governments globally controlled at least 2.2% of the total Bitcoin supply. Unlike institutional investors and individuals, most governments that hold Bitcoin do not actively engage in crypto trading, such as buying and selling.
In most cases, the governments that hold Bitcoin acquired their BTC stashes from assets seized by individuals involved in criminal activities. The United States ranks at the rank of 213,297 Bitcoins, according to Coin Gecko data. The figure will likely grow if President-elect Donald Trump continues his campaign pledge to create a formal strategic Bitcoin reserve.
There are Rumors that China Owns Bitcoin
Whether or not China owns Bitcoin, the country has long been recognized for its stringent attitude towards Bitcoin and cryptocurrencies in general. In the past, Chinese authorities have implemented serious crackdowns that have led to the ban of activities related to cryptocurrencies, including trading and mining.
Despite the restrictive environment, there has always been word that China owns Bitcoin, which could have most likely been acquired through BTC seizures from suspected criminal elements. If such reports are correct, perhaps China owns Bitcoin, which is estimated to be over 191,000 pieces, but no one has any evidence of the same.
China was Among the First Countries to Embrace Cryptocurrencies
Other governments that hold Bitcoin reserves include the United Kingdom, which has approximately 61,000 BTC, which was mostly acquired as the authorities cracked down on money laundering operations. El Salvador is the most notable of all countries, and it made history in 2021 by becoming the first country to adopt BTC as legal tender alongside the U.S. dollar. El Salvador President Nayib Bukele has been the driving force behind the initiative by championing the potential of crypto to revolutionize the country’s financial systems and enhance economic inclusion.
As the debate rages on whether China owns Bitcoin, it is among the first countries that enthusiastically embraced the idea of cryptocurrencies. As early as 2011, a cryptocurrency exchange in the country, BTC China, was trading digital assets. Moreover, China’s search engine giant, Baidu, started accepting Bitcoin as payment for its website security services in 2013. It wasn’t long before large-scale cryptocurrency mining began in the country, with the country welcoming Bitmain, the first crypto mining equipment manufacturer.
Conclusion
When members of the G20 nations agreed to endorse a crypto-asset regulation roadmap in September 2023, China, a member country, agreed with the proposal. However, even after the country banned mining activities and crypto trade in 2021, the country hasn’t relaxed its stance as businesses associated with Bitcoin mining, trading, exchanges, or its use as a mode of payment remain unchanged. However, the Chinese government has an interest in developing an official digital currency, with the People’s Bank of China working to develop China’s digital yuan, the e-CNY.
