Changpeng Zhao (CZ), the founder of Binance, has sparked speculation about North Korea’s potential Bitcoin reserve strategy following reports that the country has overtaken Bhutan and El Salvador in crypto holdings. North Korea is now the fourth-largest Bitcoin-holding nation, trailing only the United States, China, and the United Kingdom.
The increase in North Korea’s Bitcoin reserves is linked to the infamous Lazarus Group, which recently converted a significant portion of the $1.4 billion in stolen ETH from the Bybit hack into BTC. According to Arkham Intelligence, the group currently holds 13,518 BTC, valued at approximately $1.13 billion at Bitcoin’s current price of $83,263.
CZ subtly addressed the development in a social media post, stating, “Different ways to build a strategic crypto reserve,” accompanied by a laughing emoji. His remark, though lighthearted, has intensified discussions about whether North Korea is actively building a Bitcoin reserve. While some view it as an unconventional move for an isolated nation, others see it as a strategic financial maneuver amid sanctions and global economic restrictions.
The United States remains the largest Bitcoin-holding nation with 198,109 BTC ($16.47 billion), followed closely by China with 195,000 BTC ($16.18 billion) and the United Kingdom with 61,245 BTC ($5.1 billion). Previously, Bhutan and El Salvador held the fourth and fifth spots, with Bitcoin reserves of 10,634 BTC ($886 million) and 6,118 BTC ($509.5 million), respectively. However, after the Bybit hack and subsequent BTC conversion, North Korea surpassed them both.
Speculation has grown about why the Lazarus Group opted to move their illicit funds into BTC rather than other cryptocurrencies. Some analysts believe this suggests North Korea sees Bitcoin as a valuable long-term asset, similar to how other countries are beginning to view digital assets as part of their financial reserves.
Meanwhile, South Korea remains skeptical about adopting Bitcoin as a reserve asset. The Bank of Korea recently rejected proposals from South Korean lawmakers to integrate Bitcoin reserves, citing potential transaction cost spikes during market instability.
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