Justin Sun, the founder of the Tron blockchain, has recently urged China to adopt a more forward-thinking approach to cryptocurrency policy. His advice comes as former US President Donald Trump plans to position Bitcoin as a key player in the global economic landscape if he is re-elected.

China Advised to ‘Step Up’ Bitcoin Policies

On July 18, Sun took to social media to call for China to advance its Bitcoin policies, arguing that increased competition between China and the US in Bitcoin regulation would benefit the industry as a whole. “China should make further progress in this area. Competition between China and the U.S. in Bitcoin policy will benefit the entire industry,” Sun stated.

Market analysts suggest that Bitcoin’s distinct attributes as digital gold could become central in global power dynamics. They argue that Trump’s support of Bitcoin and its geopolitical implications might prompt China to reconsider its stance on the digital asset. Matthew Pines, a national security fellow at the Bitcoin Policy Institute, noted that Bitcoin and stablecoins could help counter the expansion of China’s digital authoritarianism and bolster U.S. sovereign debt markets.

Interestingly, both China and the US, significant holders of Bitcoin, possess approximately 400,000 BTC together, according to Bitcoin Treasuries data. Despite this, their approaches to cryptocurrency regulation have significantly diverged. While the US, influenced by Trump’s advocacy, appears to be rethinking the sector, China has largely distanced itself from crypto. Since 2017, China has restricted cryptocurrency trading, banning banks and payment systems from handling digital assets. In May 2021, the People’s Bank of China (PBOC) declared all transactions involving Bitcoin and other cryptocurrencies illegal.

Critics of these restrictions, like Professor Wang Yang from Hong Kong University of Science and Technology, have challenged China’s crypto ban. Wang has urged the government to reconsider its stance on crypto mining, highlighting the geopolitical risks and potential benefits of embracing the digital asset.

Conclusion

As global power dynamics continue to shift, the competition between the US and China regarding Bitcoin policy could play a pivotal role in shaping the future of the cryptocurrency industry. With influential figures like Justin Sun advocating for policy reforms, it remains to be seen how these two superpowers will navigate the evolving landscape of digital assets.

Takeaways

  • Justin Sun calls for China to reform its Bitcoin policies.

  • Competition between China and the US in Bitcoin regulation could benefit the industry.

  • Trump’s advocacy for Bitcoin may influence global power dynamics.

  • China and the US together hold approximately 400,000 BTC.

  • Critics challenge China’s restrictive cryptocurrency policies, urging reconsideration.

Source: BeInCrypto

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