Every nation has its fiat currency and CBDC will be an alternative for traditional fiat currency only. Support or anti Bitcoin and cryptocurrencies depends on how government want citizens and commercial companies build up products, grow and gain wealth. Together they can build up individual, institutional and national wealth but only if government allows it to happen.

Chinese government have yet shown that they are too opened with such scenario, and they want to control everything, not because of Bitcoin or cryptocurrencies. Even before this blockchain and cryptocurrency era, CCP had history of centralized governance against their citizens.

China is a falling nation, and their effort to gain success with BRICS is falling down too. They can focus on BRICS or distract to something else but their national infrastructures won't support their growth in long term.

A nation with a dictator regime, with an individual dictator or a family dictator won't go too far to any good future. China exploited the friendly policies from the USA and Wester nations in several decades, together with their golden population era to thrive very rapidly but these things now changed.

I feel that China stance on Bitcoin is one of hypocrisy because banning Bitcoin while holding billions worth of Bitcoin does not add up. Even though those coins were confiscated, if they had no faith in Bitcoin, they would have sold them off like Germany did. Instead of that, they chose to hold thereby becoming the second largest government holder of Bitcoin after the US while denying their citizens the opportunity to amass wealth through Bitcoin. If this is not hypocrisy, I don't know what we should call that. 

Trading is not allowed, but I always thought, if they have allowed people to own Bitcoin but did not allow them to buy or sell BTC, whether in crypto to crypto or crypto to fiat deals, then how the hell are people going to own BTC in the first place? They go to other countries and buy it and then own it, or they use informal ways!

Well, for some time I thought Chinese people were not buying and selling crypto, but on the 10th of October's incident in 2025, many Chinese, along with other nationals, lost their trades on Binance due to some failure of liquidity management from the broker's side. Well, that showed millions were still trading crypto, and using Binance is not even an informal way. That's a centralized platform.

So the Chinese government is not taking strict action against them, maybe!

Even though China has not legally approved the use of crypto currency, there are people who are still using it. It doesn't matter that people in chia are not using crypto in any form. From what am seeing about this whole thing is that the government of China is not just comfortable about the idea of crypto currency, hence the reason why they are banding the use of crypto currency in the country.

I just hope that in the years to come China can have a change in policy when it comes to Crypto currency and it use in the country. The reason is because there are alot of opportunities that crypto currency has in stock not only to the citizens only but even to the over economy of China.

Its worth noting that China's 190kBTC holding are still just speculation. There is no solid proof that they still hold them.
It's all still based on rumors. Nobody has 100% proof that they sold or are still holding them.

We should separate what's confirmed from what's just speculation. So calling China hypocritical based on this assumption isn't really justified.


https://finance.yahoo.com/news/china-sells-nearly-20-billion-074753348.html

As long as China only holding seized bitcoin and don't really buying it from the market, it ain't hypocrisy, like they are holding it because a criminal case not because they are intending to buy it and invest in it. The bitcoin happens to jump into China's pocket on accident. I wouldn't even consider China holding Bitcoin unless they made statement that they are holding it as reserve unlike USA.