Former Binance CEO Warns of Delay Consequences After US Decision to Form Bitcoin Reserve
Former Binance CEO Changpeng “CZ” Zhao claims to be advising governments worldwide on establishing strategic cryptocurrency reserves. This initiative has gained particular urgency after President Donald Trump signed an executive order in March 2025 to create a national Bitcoin reserve and accumulate other crypto assets. According to Zhao, the US decision has triggered a global race for state cryptocurrency reserves, and countries that delay their creation will have to pay significantly more to acquire digital assets.
The New Reality of National Cryptocurrency Reserves
At a panel discussion at the Token2049 conference in Dubai, Zhao shared information about his advisory activities: “We are talking with many countries, advising on how to set up a crypto strategic reserve. Very basic fundamental stuff like what wallet solutions to use? Do you use a professional custody solution, or do you use your own cold wallets?”
According to the former Binance executive, after the US decision, other countries are effectively forced to follow suit: “With one of the world’s largest economies holding Bitcoin, or making a crypto reserve, other countries are forced to do it. Because the later you do it, the more expensive your crypto will be.”
This dynamic marks a fundamental shift in the international financial system, where cryptocurrencies, originally created as alternatives to state currencies, are now becoming part of national strategic reserves.
“We are witnessing a historic transformation in sovereign states’ attitudes toward digital assets,” comments Alexei Fedorov, lead analyst at Crypto Economics Research. “Five years ago, such discussions would have been perceived as science fiction, and today it’s a matter of national economic security for many countries.”
Bhutan as a Model, Europe Lags Behind
Among the countries actively implementing cryptocurrencies, Zhao specifically highlighted Bhutan. The special administrative region of this Asian country has included Bitcoin, Ethereum, and the BNB token (Binance ecosystem’s native token) in its strategic reserves.
“I think it is a very meaningful thing to do,” Zhao noted, referring to advising countries on blockchain matters. “I don’t charge for my time, it’s all pro bono. But I think, again, it’s very important for our industry, and it’s also important for each country’s economy.”
At the same time, Zhao expressed concern about the absence of European countries in the discussion about national cryptocurrency reserves: “I don’t see Europe in this discussion. There’s an exception: Montenegro is actually quite pro-crypto, we have an active dialogue with the Prime Minister there […] other than Montenegro, yeah [Europe] is kind of missing on the map.”
“Europe risks being sidelined in one of the most important financial shifts of the 21st century,” believes Maria Kovaleva, director of the European Institute of Cryptoeconomics. “While the US, Asian countries, and even some African nations are actively exploring and implementing blockchain technologies at the state level, most European countries continue to take a wait-and-see approach, which could result in serious technological lag.”
Advisory Role After Legal Troubles
Notably, Zhao is advising countries separately from the Binance cryptocurrency exchange that he founded. He stepped down as CEO in November 2023 as part of a record $4.3 billion settlement with US prosecutors. Zhao subsequently served a 4-month prison sentence and was released in September 2024. The conditions of his settlement and release prohibit him from having any involvement in managing Binance.
“Zhao’s role as an advisor to governments on cryptocurrency matters represents an interesting precedent,” notes Jonathan Wilson, partner at law firm Blockchain Legal Advisors. “Despite legal issues in the US, his technical knowledge and industry experience remain in demand globally. This highlights the gap between regulatory approaches of different countries and the shortage of expertise in the field of digital assets.”
Long-term Prospects and Adoption Rates
Contrary to some critics’ opinions that the US decision to create a Bitcoin reserve signals a market peak, Zhao does not believe that blockchain adoption has reached a plateau. Instead, he calls for patience:
“Out of 200 countries, 12 countries are just starting, right? Even, the US is just starting. Everything’s just starting,” Zhao stated. “I think when people invest, they’re really impatient. Of course, when I invest, I want to see my money 10x tomorrow. Why not, right? But the market doesn’t work like that.”
In Zhao’s view, we are only in the initial phase of cryptocurrency adoption at the state level, and this process will take years, perhaps decades.
“Zhao’s statement that ‘everything’s just starting’ has merit,” agrees Dmitry Volkov, head of the research group on central bank digital currencies. “Most countries are only in the early stages of formulating a comprehensive strategy regarding digital assets. We have yet to see full integration of cryptocurrencies into states’ macroeconomic and monetary policies. However, the US decision to create a Bitcoin reserve could be the catalyst that accelerates this process.”
Geopolitical Consequences and New Financial Architecture
The movement toward national cryptocurrency reserves could have far-reaching geopolitical consequences, especially in the context of ongoing debates about the future of the US dollar as the world’s reserve currency.
Including digital assets in national reserves can be viewed as a hedging strategy against traditional currency inflation and potential financial sanctions. For smaller countries like Bhutan or Montenegro, it can also be a way to diversify national reserves and increase financial independence.
“Forming cryptocurrency reserves is not just a technological solution, but a strategic move in the global financial and geopolitical game,” explains Professor Alexander Petrov of international economics. “Countries that integrate digital assets into their national reserves earlier than others potentially gain an advantage in shaping future rules of the game in the international financial system.”
However, this trend also raises concerns about cryptocurrency volatility and their suitability for national reserves. Critics point to risks associated with sharp fluctuations in the value of Bitcoin and other crypto assets, as well as questions about the security of storing and managing such reserves.
“Including highly volatile assets in national reserves is an unprecedented experiment,” warns Elena Sokolova, former advisor to the International Monetary Fund. “Traditionally, such reserves were formed from the most stable and liquid assets. The strategy of including cryptocurrencies requires fundamentally new approaches to risk management at the state level.”
Conclusion: A New Era of State Cryptocurrency Reserves
Changpeng Zhao’s advisory activities and his warning about the consequences of delay reflect a new reality in which cryptocurrencies are becoming elements of national strategic reserves. The US decision to create a Bitcoin reserve appears to have launched a global race, in which countries strive to keep up with the emerging trend.
Regardless of whether Zhao’s optimistic forecasts about widespread cryptocurrency adoption at the state level come true, the very fact of such high-level consultations testifies to a significant evolution in the perception of digital assets. From a technology pushed to the periphery of the financial system, cryptocurrencies have transformed into a potential component of national wealth and economic security.
As this trend develops, the most important issues will be not only the technical aspects of creating and managing such reserves but also their integration into the existing international financial architecture, as well as the development of appropriate regulatory frameworks ensuring the safety and stability of such innovative approaches to national reserves.