Hashkey Group CEO Xiao Feng believes the pro-crypto Trump administration may strain China to loosen its stance on Bitcoin (BTC) and different digital belongings.
In an interview with the South China Morning Submit, Feng expressed his perception that China's crypto market will finally open up, particularly if President Donald Trump and the US Congress undertake supportive insurance policies for digital belongings.
Trump's affect
Feng argued that clear and constant US crypto rules would drive China to rethink its method. He stated:
“If the US Congress and the President take proactive steps to make clear crypto-regulations, proceed to legislate and advocate for the sector, it will absolutely push China to undertake cryptocurrencies.”
Trump has made digital belongings a central theme of his 2024 marketing campaign. He has pledged to fireplace Securities and Trade Fee (SEC) Chairman Gary Gensler on his first day in workplace and reverse insurance policies he believes are stifling innovation within the crypto business.
The US President-elect has additionally proposed to cease promoting bitcoin seized by the US authorities and strategically maintain it as an funding asset.
Feng's remarks counsel that if enacted, these coverage adjustments may shift China's traditionally adverse perspective towards cryptocurrencies.
Stablecoins may pave the way in which
China maintains strict rules on digital belongings, banning preliminary coin choices (ICOs) in 2017 and cryptocurrency buying and selling and mining in 2021.
Nevertheless, Feng steered that China may finally open its market to regulated stablecoins – digital currencies pegged to actual belongings – to facilitate cross-border commerce.
In line with Feng:
“Stablecoins supply the perfect answer for cross-border commerce between companies and customers.”
Stablecoins are more and more acknowledged for his or her potential to enhance cross-border funds by providing sooner, more cost effective and extra clear options to conventional strategies. Their adoption is taken into account a major advance within the international monetary atmosphere.
Their use has grown considerably this yr, particularly in rising and growing economies which might be scuffling with excessive inflation and financial uncertainty.
As of mid-2024, the cumulative market capitalization of stablecoins has reached roughly $165 billion, enabling trillions of {dollars} in transactions per yr. Notably, greater than 20 million blockchain addresses take part in transactions with stablecoins each month, highlighting their rising position in on a regular basis monetary actions.
