Joao Wedson

The liquidity of China’s central bank is becoming one of the biggest macro drivers in the world.

While many people are still focused only on the Fed, the ECB, and the BoJ, the balance sheet of the People’s Bank of China is already around US$7 trillion, practically at the same level as the largest central banks on the planet.

According to the latest data:

🇨🇳 People’s Bank of China = $7.2T, up +$923B in 1 year
🇺🇸 Federal Reserve RRP + TGA = $5.8T, down -$144B in 1 year
🇯🇵 Bank of Japan = $4.2T, down -$783B in 1 year
🇪🇺 European Central Bank = $7.2T, up +$190B in 1 year

The difference is that China has been expanding its liquidity power at a time when part of the developed world is still trying to normalize balance sheets, control inflation, and manage high public debt.
This does not mean that “central bank liquidity” is free money flowing directly into stocks, crypto, or commodities.

But it does mean something very important:
whoever controls a larger share of macro liquidity has more ability to influence credit, FX, interest rates, capital flows, and risk appetite.

And China is making the West very uncomfortable, because China’s financial growth did not come out of nowhere. It was built over decades of infrastructure, industry, global trade, reserves, giant state-owned banks, and an increasingly relevant monetary architecture.

Europe took centuries to build its standard of income, education, and quality of life. China compressed much of that progress into just a few decades.

The big question I see now is not only who has the largest GDP. It is who controls the liquidity that will drive the next global cycle.

And this will spill over into every market, including crypto.