#squarecreator - Silent De-dollarization: Why Bitcoin Would 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 chessboard, China moves its pieces silently, seeking to check the dollar king. In this way, with more than 3 trillion dollars in reserves, Beijing reconsiders its reliance on U.S. Treasury bonds while the policies of U.S. President Donald Trump 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 halls of Chinese power, where it is seen as a survival act, building a shield against the dollar, which can be used as a weapon.

The State Administration of Foreign Exchange (SAFE) is the brain behind the management of these Chinese reserves, which 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', which means agile maneuvers on a tightrope that guide 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 the context of diversification to reduce dependence on the U.S. dollar.

In this way, it decreases its reliance on bonds issued by U.S. companies, from two mortgage giants.