Xiao Feng, CEO of Hashkey Group, believes that the Trump administration's supportive cryptocurrency policy could put pressure on China to adjust and relax its stance on Bitcoin (BTC) and other digital assets.
Feng is confident that China will eventually open up and welcome cryptocurrencies, especially if US President Donald Trump and Congress pass policies that support the development of this sector.
Feng argues that clear and consistent cryptocurrency regulations from the US will prompt China to reconsider its policies.
"If the US Congress and President Trump proactively clarify cryptocurrency regulations, continue to enact supportive laws, and drive the industry forward, that will certainly prompt China to change its perspective and gradually accept cryptocurrencies."
In his 2024 presidential campaign, Donald Trump made digital assets one of his key priorities, pledging to fire Securities and Exchange Commission (SEC) Chairman Gary Gensler on his first day in office and reverse policies he believes are stifling innovation in the industry. Additionally, he proposed halting the government's sale of confiscated Bitcoin, instead holding them as a long-term strategic asset.
Feng's insights suggest that if these policies are implemented, they could create a major turning point, significantly altering China's negative stance towards cryptocurrencies over the past period.
Although China has maintained strict regulations on digital assets, including banning ICOs in 2017 and prohibiting cryptocurrency trading and mining in 2021, Feng believes China may open up its market to stablecoins to drive cross-border trade.
"Stablecoins are the optimal solution for cross-border business-to-business and business-to-consumer transactions," Feng noted.
Stablecoins are increasingly being recognized for their ability to enhance international payments, providing faster, more cost-effective, and more transparent solutions compared to traditional payment methods. The adoption of stablecoins is seen as a major step forward in the global financial system.
The popularity of stablecoins has surged in 2024, particularly in emerging economies facing high inflation and economic instability. As of mid-2024, the total market capitalization of stablecoins has reached around $165 billion, driving trillions of dollars in transactions annually. Notably, over 20 million blockchain addresses are engaged in stablecoin transactions each month, reflecting the growing importance of stablecoins in everyday financial activities.
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Annie
According to Cryptoslate
