Former White House Communications Director Anthony Scaramucci has predicted that China will establish a strategic Bitcoin reserve and restore legal mining operations by 2025, marking a potential reversal of the country's previous restrictive stance on cryptocurrencies.
Speaking at the Bitcoin MENA 2024 conference, Scaramucci suggested that China's shift would be influenced by growing Bitcoin adoption in the United States and other nations. He emphasized that as more countries embrace Bitcoin, maintaining restrictive policies could become increasingly challenging for global powers.
The prediction comes amid broader international moves toward Bitcoin reserve strategies. Several nations have already begun exploring Bitcoin integration into their financial frameworks, with Brazil proposing legislation to allocate up to $18.6 billion in reserves to the cryptocurrency. Russian lawmakers have also suggested creating national Bitcoin reserves as a potential counter to economic sanctions.
In the United States, legislative momentum has been building around Bitcoin reserves. Senator Cynthia Lummis has proposed a bill for substantial Bitcoin acquisition over multiple years, while Pennsylvania has considered allocating state reserves to the cryptocurrency. Major financial institutions like BlackRock have indicated potential support for a U.S. strategic reserve.
The timing of Scaramucci's prediction aligns with recent market developments. Following the April 2024 Bitcoin halving and the U.S. presidential election, Bitcoin reached new heights, briefly surpassing $100,000 before settling around $97,000.
While proponents argue that strategic Bitcoin reserves could enhance financial stability and monetary leadership, critics point to concerns about volatility and wealth distribution effects. However, increasing institutional involvement and government interest suggest growing acceptance of Bitcoin's role in national financial strategies.
If realized, China's potential return to the Bitcoin ecosystem could reshape the landscape of digital finance and influence how other nations approach cryptocurrency reserves in their financial planning.