Russia has embraced cryptocurrency. Will China follow suit?
On August 8, 2024, Russia announced the legalization of cryptocurrency mining in Russia. It should be noted that in 2020, Russia, like China, also banned cryptocurrency mining.
So what exactly is the reason that Russia's attitude towards cryptocurrency has changed from rejection to embrace?
The reason can be traced back to the outbreak of the Russian-Ukrainian war in 2022, when Western countries imposed 16,500 sanctions on Russia. In the Western-centralized financial system, their means have plunged the Russian economy into a cold winter, and embracing cryptocurrency is a last resort. Its purpose is to evade Western sanctions through cryptocurrency.
In today's world, the attitude towards cryptocurrency is also completely different. Countries not only recognize its legal status, but also launch its ETFs one after another. It is undeniable that cryptocurrency has become a trend.
The potential adjustment of the Chinese government's cryptocurrency policy may be due to many considerations. First of all, with the continuous advancement of blockchain technology and the expansion of application scenarios, cryptocurrency, as an important part of the digital economy era, has gradually revealed its potential economic value and technological innovation capabilities.
In addition, as an important participant in the global economy and a promoter of technological innovation, China may re-evaluate the positioning and role of cryptocurrency in its economic system, seeing that Russia has embraced encryption.
In general, despite China's strict cryptocurrency ban, the demand for domestic cryptocurrency has not diminished. Many Chinese investors and traders continue to participate in cryptocurrency transactions through overseas exchanges and underground markets. China may consider legalizing and standardizing ways to meet the needs of domestic investors and guide them back to the formal market.
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