In recent years, China has consistently reduced its exposure to US Treasury bonds but has turned to gold rather than other alternative assets like Bitcoin.
Per data from the US Treasury, China’s holdings of US Treasury bonds have declined from a peak of around $1.2 trillion in 2017 to under $800 billion this month.
This decline indicates a change in China’s strategy, a move away from the US dollar and towards other assets that hold less dependency on the American economy.
However, despite this diversification, China has steered clear of Bitcoin as a potential addition to its reserves. Instead, over the past decade, the People’s Bank of China (PBoC) has been gradually accumulating gold reserves.
China Avoids Bitcoin While Acquiring Gold
The acquisition of gold acts as a hedge against inflation and a more stable asset to balance its portfolio. China aims to shield itself from risks tied to the…
