Hashkey Group CEO Xiao Feng believes {that a} pro-crypto Trump administration might strain China to melt its stance on Bitcoin (BTC) and different digital belongings.
In an interview with the South China Morning Publish, Feng expressed confidence that China's crypto market would ultimately open up, particularly if President Donald Trump and the US Congress enact insurance policies supporting digital belongings .
Trump's affect
Feng argued that clear and constant US crypto laws would push China to rethink its strategy. He stated:
“If the US Congress and the President take proactive steps to make clear crypto laws, proceed to legislate, and defend the business, this may definitely incentivize China to simply accept crypto.”
Trump has made digital belongings a central concern of his 2024 marketing campaign. He has pledged to take away Securities and Change Fee (SEC) Chairman Gary Gensler on his first day in workplace and reverse insurance policies that in his opinion, are stifling innovation within the crypto business.
The US president-elect additionally proposed stopping the sale of Bitcoin seized by the US authorities and retaining it strategically as an funding asset.
Feng's remarks counsel that, if enacted, these coverage modifications might alter China's traditionally detrimental stance towards crypto.
Stablecoins might cleared the path
China has maintained strict laws on digital belongings, having banned preliminary coin choices (ICOs) in 2017 and cryptocurrency buying and selling and mining in 2021.
Nonetheless, Feng advised that China might ultimately open its market to regulated stablecoins – digital currencies tied to real-world belongings – to facilitate cross-border commerce.
In line with Feng:
“Stablecoins provide the very best resolution for cross-border commerce between companies and shoppers.”
Stablecoins are more and more acknowledged for his or her potential to enhance cross-border funds by offering quicker, less expensive and clear options to conventional strategies. Their adoption is taken into account a big development within the international monetary panorama.
Their use has elevated considerably this yr, notably in rising and growing economies combating excessive inflation and financial uncertainty.
By mid-2024, the cumulative market capitalization of stablecoins reached roughly $165 billion, facilitating multi-billion greenback transactions per yr. Notably, greater than 20 million blockchain addresses conduct stablecoin transactions each month, highlighting their rising position in every day monetary actions.
