According to the materials of the site - By Coinlive.me
The People's Bank of China has increased its gold reserves to 2303.5 tons by the third quarter of 2025, imposing a ban on cryptocurrencies by 2025 and targeting stablecoins.
This move signals a strategic shift in China's financial landscape, highlighting the contrast between the adoption of cryptocurrencies and regulation amid global economic uncertainty.
China's large-scale gold investments demonstrate a strategic response to cryptocurrency regulation. Through monthly purchases, the People's Bank of China increased its gold reserves to 2303.5 tons by the third quarter of 2025.
The People's Bank of China plays a crucial role in this shift. Along with strict bans on cryptocurrencies, China is introducing mandatory insurance for physical gold, gradually increasing demand and impacting stablecoins and exchanges such as Yunfeng Financial Group.
The consequences include changes in global gold markets and the behavior of Chinese cryptocurrency users. As 59 million users transition to offshore markets, cryptocurrency markets face volatility marked by Bitcoin's rise to $124,566.17, demonstrating the impact of these measures.
The financial consequences of regulation from China include increased attention to cryptocurrencies compared to physical assets. This environment favors assets resilient to confiscation, reflecting historical trends of using gold as a hedge against geopolitical uncertainty.
Historical precedents show a sustained movement towards gold as geopolitical tensions rise. Central banks around the world are adopting similar strategies, reinforcing the role of gold in risk management while simultaneously reducing the adoption of cryptocurrencies.
The strategy of acquiring gold by the People's Bank of China continues past trends. Following historical examples of asset redistribution during sanctions, gold remains the preferred means of preserving value, with correlation data confirming the relationship between Bitcoin and gold, supported by market data showing a correlation coefficient of 0.67.
"Gold continues to reach new historical highs. The correlation between Bitcoin and gold remains high. The concept of digital gold is not dead." – Ki Yong Joo, CEO of CryptoQuant
