China has long been the hardest critic in the world of crypto. Over the past decade, Beijing has prohibited exchanges, prohibited ICO and, in 2021, he went so far as to declare any illegal crypto exchange.
Now the script changes. A Hangzhou -based electric vehicle company has crossed a measure that could point out a new chapter in the relationship of China with digital assets.
This is what changes.
Jiuzi bets on Bitcoin, Ethereum and BNB
Jiuzi Holding announced its intention to build a cryptocurrency reserve of $ 1 billion, starting with Bitcoin, Ethereum and Binance Coin. The company’s board of directors has approved an investment policy in crypto-active, with the aim of strengthening its assessment and increasing the value of long-term shareholders.
CEO Tao Li called it “A proactive step in our cash management to protect and improve the value of long -term shareholders.”
To support the strategy, Jiuzi brought Dr. Doug Buerger, a well -known cryptography specialist, as chief of the farm. A new Crypto asset risk committee, led by the financial director Huijie Gao, will supervise the reserves, which will be held by the best goalkeepers.
The company says that it will not exchange for profit, but the assets will be stored in the form of a coverage and reported through the DRI documents.
Market reaction and global context
The market responded quickly. The actions listed by the United States of Jiuzi increased by 55% in trading before marketing before retreating by around 32% once the markets are opened.
This decision puts Jiuzi in accordance with other global companies that add crypto to their treasury bills. The Japanese metaplanet recently bought more than $ 600 million Bitcoin, while American companies like CEA Industries and Bitmin develop in BNB and Ethereum.
China dilemma with stablescoins
This change of business occurs while stablecoins become a greater geopolitical history.
More than 99% of the $ 280 billion market is set to the US dollar. With the Genius Act in America opening the way to stables of the regulated dollar, the United States is pushing its domination more deeply in digital finance.
For China, this is a problem. Beijing has long tried to reduce dependence on a dollar, but stablecoins only strengthen it. Hong Kong emerges like a test field. The new rules that came into force on August 1 have established strict standards for transmitters, potentially opening the door to stablecoins supported by Yuan or HKD.
Read also: Hong Kong is launching hard -co -stable rules because $ 1.5 billion is paid in crypto startups
Why it matters
Jiuzi’s decision concerns more than one business. This is the first sign that Chinese companies can be ready to adopt digital assets even if the government maintains direct trade under close control.
If others follow, China could go from the most anti-Crypto nation to the world to one of the most strategic players in the way digital assets are used in business.
For a country that once slammed the door on Bitcoin, this billion dollars reserve looks like something new.
