China has been reducing its holdings of US Treasury bonds and instead diversifying its assets, particularly with gold as a hedge against inflation and political uncertainties. However, China has not included Bitcoin in its portfolio due to strict regulations on cryptocurrencies. Other countries like El Salvador and Bhutan, as well as major corporations, have embraced Bitcoin as an alternative asset. Europe is stepping in to fill the gap left by China's reduction in US Treasury bond holdings. Despite China's approach, it still holds a significant amount of Bitcoin acquired from confiscations.
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