Hashkey CEO says Trump administration may affect China to simply accept Bitcoin

Hashkey Group CEO Xiao Feng believes a pro-crypto Trump administration may strain China to calm down its stance on Bitcoin (BTC) and different digital property.

In an interview with the South China Morning Put up, Feng expressed his confidence that China’s crypto market will ultimately open up, notably if President Donald Trump and the US Congress undertake supportive insurance policies for digital property.

Trump’s affect

Feng argued that clear and constant US crypto rules would drive China to rethink its strategy. He mentioned:

“If the US Congress and the president take proactive steps to make clear crypto rules, proceed to legislate, and advocate for the sector, this will surely drive China to simply accept crypto.”

Trump has made digital property a central concern in his 2024 marketing campaign. He has pledged to take away Securities and Change Fee (SEC) Chair Gary Gensler on his first day in workplace and to reverse insurance policies that, in his view, stifle innovation within the crypto trade.

The US President-elect has additionally proposed halting the sale of the US authorities’s seized Bitcoin and holding it strategically as an funding asset.

Feng’s remarks recommend that, if enacted, these coverage modifications may shift China’s traditionally damaging stance towards crypto.

Stablecoins may pave the way in which

China has maintained strict rules on digital property, having banned preliminary coin choices (ICOs) in 2017 and crypto buying and selling and mining in 2021.

Nonetheless, Feng prompt that China may ultimately open its market to regulated stablecoins — digital currencies pegged to real-world property — to facilitate cross-border commerce.

In response to Feng:

“Stablecoins provide the perfect resolution for cross-border business-to-consumer commerce.”

Stablecoins have been more and more acknowledged for his or her potential to reinforce cross-border funds by providing quicker, cheaper, and clear alternate options to conventional strategies. Their adoption is seen as a big development within the world monetary panorama.

Their utilization has grown considerably this yr, particularly in rising and growing economies fighting excessive inflation and financial uncertainty.

As of mid-2024, the cumulative market capitalization of stablecoins reached roughly $165 billion, facilitating trillions of {dollars} in transactions yearly. Notably, over 20 million blockchain addresses engaged in stablecoin transactions every month, highlighting their growing function in on a regular basis monetary actions.

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