#squarecreator - Silent De-dollarization: Why Bitcoin Might Be on China's Radar?

$BTC The Asian country diversifies its vast reserves to reduce its dependence on the dollar, using gold and other markets in the face of geopolitical tensions.

On the global board, China moves its pieces stealthily, seeking check on the dollar king. In such a way that, with more than 3 trillion dollars in reserves, Beijing is reevaluating its dependence on U.S. Treasury bonds while U.S. President Donald Trump's policies and the shadow of sanctions imposed by his country redraw the rules of the financial game. It is de-dollarization that is gaining new momentum, resonating in the corridors of Chinese power, where it is seen as an act of survival, forming a shield against the dollar that can be used as a weapon.

The State Administration of Foreign Exchange (SAFE) is the brain behind the management of these Chinese reserves that amount to 3.2 trillion dollars, one of the largest in the world. Thus, supervised by the People's Bank of China, the entity manages assets such as U.S. Treasury bonds, agency bonds, gold, and, to a lesser extent, private investments.

SAFE's mission includes regulating the foreign exchange market, protecting reserves against geopolitical risks, such as sanctions, and diversifying assets to balance security, liquidity, and profitability. And to achieve this, it is currently appealing to the strategy of 'tengnuo', that is, agile maneuvers on a tightrope with which it guides its de-dollarization efforts, as explained in a recent Financial Times article.

In essence, its strategy involves a cautious yet dynamic approach to balancing liquidity, security, and profitability in the management of China's foreign reserves, especially in a context of diversification to reduce dependence on the U.S. dollar.

In such a way that it reduces its dependence on bonds issued by U.S. companies, from two mortgage giants.