China’s Leading Think Tank Explores Bitcoin as Strategic Reserve Asset Amid Regulatory Concerns
Recent developments highlight a growing focus on Bitcoin within national reserve strategies, involving both Pakistan and China. Initially, the International Monetary Fund (IMF) expressed skepticism about Pakistan’s announcement to adopt Bitcoin (BTC) as part of its national reserves, raising concerns over the legality of cryptocurrencies and heightened energy demands, especially for Bitcoin mining. Pakistan proposed solutions such as utilizing excess electricity, establishing the Pakistan Digital Asset Authority, and appointing Binance founder Changpeng Zhao to guide crypto policy.
Meanwhile, in a noteworthy update, China’s International Monetary Institute (IMI)—a government-affiliated think tank—has publicly shared a comprehensive report analyzing Bitcoin as a sovereign reserve asset. Although China maintains strict prohibitions on crypto trading and mining, the IMI report suggests Bitcoin’s similarities to gold and underscores its potential to hedge against US dollar dominance, inflation, capital controls, sovereign defaults, and geopolitical risks. The analysis argues a 2–5% BTC allocation in sovereign portfolios could be optimal and hints that some countries may already be quietly adding Bitcoin via sovereign wealth funds. The IMI’s willingness to openly examine these concepts marks a significant step, as its perspectives often foreshadow policy developments in China.
For crypto traders, these events signal a potential shift in global attitudes toward Bitcoin as a reserve asset. The explicit consideration of Bitcoin by influential institutions like the IMI and national-level strategies—even if contested—heighten BTC’s legitimacy and could influence future market demand.
Bullish
The direct involvement and analysis of Bitcoin as a sovereign reserve asset by credible institutions such as China’s IMI and its discussion in Pakistan’s national strategy increase Bitcoin’s legitimacy as a global financial instrument. The IMI’s acknowledgment, given China’s traditional hardline stance, could inspire similar exploratory discussions or policy tests in other countries, driving institutional interest. Even though neither Pakistan nor China have officially allocated reserves to Bitcoin yet, the public dialogue and policy considerations provide a positive narrative for BTC. Historically, the legitimization or strategic adoption of Bitcoin by states and major institutions has triggered bullish sentiment and increased demand. In the short term, this news may not immediately impact prices due to the lack of formal adoption, but it sets the stage for long-term mainstream acceptance, potentially driving bullish momentum as more policymakers and traders speculate on future sovereign accumulation.