Xi Jinping says China to Legalize and to Buy $40b of XRP for their Crypto Strategic Reserve
- Lilly Mackani
- Aug 13
- 2 min read
The crypto market is buzzing with one of the most explosive rumors of the year: China is allegedly preparing to legalize cryptocurrency trading and purchase $40 billion worth of XRP to establish a “Crypto Strategic Reserve.”
The claim — said to be tied to comments attributed to Chinese President Xi Jinping — has sent shockwaves through social media and triggered a wave of speculative excitement among XRP holders.
While no official government confirmation has been issued, the possibility of the world’s second-largest economy backing one of crypto’s most established assets is a narrative too big for traders to ignore.
Why XRP Would Make Strategic Sense for China
If China truly decided to create a crypto reserve, XRP would be a prime candidate for several reasons:
Institutional-grade technology: The XRP Ledger offers high-speed, low-cost transactions — perfect for cross-border trade and global settlement.
Ripple’s growing network: Ripple’s partnerships span hundreds of financial institutions, providing ready-made utility for a nation looking to diversify from USD-centric systems.
Geopolitical leverage: A strategic XRP reserve could give China an edge in bypassing SWIFT and reducing dependence on U.S.-controlled financial rails.
XRP Ledger’s Expanding Real-World Utility
Beyond the speculation surrounding China, XRP’s ecosystem continues to grow with groundbreaking real-world applications.
RealFI recently announced the successful launch of the REAL token on the XRP Ledger on June 7th, 2025 — a milestone in the evolution of global real estate. This initiative marks the tokenization of the $654.39 trillion global real estate market, aiming to revolutionize property transactions worldwide.
With a total supply capped at 100,000,000 tokens, REAL is positioned as a universal Real Estate Currency. From rent payments to full property purchases, the REAL token enables seamless integration of real-world assets into the blockchain economy, leveraging XRP Ledger’s speed, low cost, and transparency to bring efficiency to the housing market on a global scale.
This development underscores how XRP Ledger is not just a speculative asset — it’s becoming a foundation for tokenizing and moving value across every sector of the economy.
Potential Market Impact
Even if the $40B Chinese XRP reserve never materializes, the idea alone is already fueling bullish sentiment:
Liquidity shock: A purchase of that size could absorb a massive portion of XRP’s circulating supply, driving prices sharply upward.
Global FOMO: If China were to take the lead, other nations might consider similar crypto reserve strategies.
Utility narrative: Real-world projects like RealFI add tangible use cases that complement XRP’s cross-border settlement role.
What’s Reality and What’s Rumor?
Fact-checkers caution that, as of now, there’s no concrete proof that Beijing has authorized such a program. China’s public stance toward cryptocurrency remains cautious, prioritizing the development of its digital yuan (e-CNY) while maintaining strict rules on private crypto trading.
However, crypto history has shown that where there’s smoke, there’s often fire — and major strategic asset moves are rarely telegraphed until the deal is done.