Is China ready to open up cryptocurrencies?
After Donald Trump was elected as the President of the United States and launched a series of policies to open up cryptocurrency, the global digital asset chess game has quietly begun. As one of the world's powers and the United States' biggest competitor, China, Will it change its stance on cryptocurrency in response to the international situation?
Recently, Xiao Feng, chairman of HashKey Group, gave a thought-provoking point of view in an exclusive interview with the South China Morning Post: If Trump successfully returns to the White House, will his encryption-friendly policies be a catalyst for China to re-adopt encryption? Currency Catalyst?
Looking back on the past, China has launched a comprehensive ban on cryptocurrency since 2021. Not only has it strictly regulated and blocked the domestic encryption mining industry, it has also banned cryptocurrency trading in China, allowing a large number of exchanges to move overseas.
At present, China still has a tough attitude towards cryptocurrency, banning trading, mining and initial coin offerings (ICOs). However, Xiao Feng pointed out that Trump promised during the campaign to build the United States into the "crypto capital of the earth". This is not only This is a great benefit to the encryption industry in the United States, and may also create some kind of "competitive pressure" on Beijing.
He believes that the United States’ clear commitment to cryptocurrencies, especially driven by geopolitics, may accelerate China’s re-evaluation of its attitude towards cryptocurrencies.
Experts reveal "this key" after Trump takes office
Trump is expected to officially take office in January next year, but so far, his influence on cryptocurrency cannot be underestimated. He has not only promised to remove the chairman of the U.S. Securities and Exchange Commission (SEC), who is currently regarded as anti-crypto, on his first day in office. Gary Gensler also proposed that the U.S. government stop selling seized Bitcoins and further use them as strategic assets to establish "national reserves."
Xiao Feng predicted that under the influence of these factors, China's timetable for accepting cryptocurrency business may be shortened from 5 to 6 years to 2 years: "In the absence of these events, China may take longer to accept cryptocurrencies." currency, but the actual international situation is forcing China to speed up.”
Xiao Feng’s point of view is not unreasonable. Considering China’s vigorous promotion of digital renminbi (CBDC) in recent years and its continuous attempts to test international payment systems, if the U.S. Congress and the president formulate clear and consistent encryption regulations, China may be forced to rethink its current policies.
This impetus may come not only from the policy itself, but also from the technological innovation and capital flows brought about by the booming development of the encryption industry in the United States. Xiao Feng believes that as international competition for the encryption industry gradually takes shape, the impact on China Rather than reacting passively, it is better to actively participate.
Possibility of China adopting stablecoins
Yet Xiao stressed that under the previous regulatory policy on cryptocurrencies, China may not turn directly to openness, but will seek other ways to balance internationalization needs with internal controls.
Xiao Feng specifically mentioned "stablecoins". Stablecoins linked to real-world assets are regarded as a faster and more effective solution in cross-border trade.
As of mid-2024, the global market value of stablecoins has reached approximately US$165 billion, enabling trillions of dollars in transaction activity every year. In an environment of high inflation and economic uncertainty, the rise of stablecoins in the global financial system is no longer tolerated. ignore.
Xiao Feng believes that although China is still wary of the stablecoin market and has no clear signs that it will turn to support decentralized cryptocurrencies such as Bitcoin, Trump’s policies and global competition may change this situation. key factors.
As the United States accelerates its pace in the encryption field, China may be more inclined to explore stablecoins and regulated blockchain technology to ensure that it does not fall behind in this international game. Under the chessboard of the Sino-US game, the future The cryptocurrency industry has become closely linked to geopolitics, economic competition, and national security.
"Is China ready to open up cryptocurrencies? Experts reveal the key after Trump takes office: Competition has begun. This article was first published in "CryptoCity"
