What will China do if the United States really starts to sell gold to accumulate bitcoins?
In short
- Two Chinese multinationals based in Shanghai in the world's top 20 of companies holding the most bitcoins.
- It is becoming clearer on the United States for the Bitcoins Strategic Reserve. Michael Saylor and senator Cynthia Lummis with a wand.
- Bitcoin, the Bretton Woods 2.0.
Bitcoin still persona non grata in China
Although China maintains its prohibitions to buy, trader and undermine bitcoins, reality is not as relentless.
It is true that Chinese banks are prohibited from making banking transfers to cryptocurrency platforms. However, even if Binance, Huobi, Bitfinex and OKX left, a vibrant black market exists.
It is possible to get bitcoins for those who really want them. Same for mining. Admittedly, most of the great minors had to fold up, but not all. Those who use surpluses of hydraulic energy are tolerated, not to mention the little minors who have nothing to do with the prohibition.
Conversely, Hong Kong (semi-autonomous Chinese jurisdiction) is much more progressive. The tax rules are clear and several firms allow you to buy bitcoins (OSL Digital, Hash Blockchain, Bullish HK, etc.).
The institutionalists therefore have solutions and several companies based in Shanghai take advantage of it. This is the case with Cango and Next Technology Holding. The latter has just announced the issue of shares to buy for the equivalent of $ 500 million Bitcoins.
These two companies already hold more than 11,200 bitcoins. They are respectively in the fifteenth and seventeenth place in the world, behind the American Strategy (639,000 BTC), Tesla (11,509 BTC) or the Japanese Metaplanet (21,000 BTC). The latter has just successfully raised $ 1.4 billion to increase its bitcoin reserve.
We bet that other Chinese firms soon brave omerta. Even more easily since the Chinese government probably has remorse in view of what is happening in the United States.
Us Strategic Bitcoin Reserve
Many people, such as Saint Thomas, are waiting for the United States to take action to believe it. Sage attitude, but there are signs that do not deceive.
For example, most members of the government have bitcoins. Donald Trump too, as well as his sons who have just brought the minor American Bitcoin to the stock market. Eric Trump said this Tuesday on CNBC that Bitcoin is “Modern gold, the best active of our time”.
More concretely, Michael Saylor, co -founder of Strategy, was in Washington this week to support the bill linked to the Bitcoin Strategic Reserve. He joined other sector leaders during a round table organized by senator Cynthia Lummis and the representative (deputy) Nick Begich.
As a reminder, the bill (Bitcoin Act) proposes that the United States government acquires a million bitcoins over five years. “If the United States sold its gold and bought bitcoins, it could buy 200,000 each year”said Cynthia Lummis at the start of the summer.
The round table was aimed at drawing up a strategy with a view to quickly obtaining bipartite support in the two rooms. It was apparently decided that “Bitcoin Act” will merge with the Cryptomonnaie Market Structure Bill (digital asset regulation) and the anti-CBDC bill. A single legislative package that will better pass the orange pill.
Bretton Woods 2.0
It's no longer a secret, China and the BRICS in general no longer want the dollar. The war in Ukraine is also the scathing response of the United States to this sling. The Russian President is indeed by spearhead of dedollarization, he who still declared at the end of last year:
The use of the dollar as a global currency reports a lot of money in the United States … The dollar allows them to exploit other savings to their advantage …
China is not to be outdone. Its dollar reserves melt as snow in the sun. Better still, Beijing has had its own international payment system (CIPS). No need for the Swift network or the dollar. Half of its international exchanges are already done in Yuan.
Washington must face the facts. It is time to make a cross on the famous “exorbitant privilege” and to absorb the trade deficit. This is Donald Trump's priority, even if it means setting up customs taxes, even for his allies.
Clearly, the world returns slowly at the time of the Gold Standard, when gold was in a way international currency. Russia and China have been preparing for years by accumulating huge amounts of gold. They each hold 2,300 tonnes, the equivalent of $ 1,200 billion.
This is why Bitcoin is an interesting card to play for the United States. By selling gold to buy bitcoins, Donald Trump would kill two strokes with one stone. He would weaken the Sino-Russian tango while first putting his hand on the gold of the third millennium.
Vladimir Putin seems to be aware of the American poker. What about Xi Jinping?
Don't miss our article: China drops the dollar, Bitcoin stands out as an alternative.
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