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Hashkey Group CEO Xiao Feng believes a pro-crypto Trump administration may stress China to loosen up its stance on Bitcoin (BTC) and different digital belongings.
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 belongings.
Trump’s affect
Feng argued that clear and constant US crypto laws would drive 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 advocate for the sector, this would definitely drive China to simply accept crypto.”
Trump has made digital belongings a central situation in his 2024 marketing campaign. He has pledged to take away Securities and Alternate 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 adverse stance towards crypto.
Stablecoins may pave the best way
China has maintained strict laws on digital belongings, having banned preliminary coin choices (ICOs) in 2017 and crypto buying and selling and mining in 2021.
Nevertheless, Feng prompt that China may ultimately open its market to regulated stablecoins — digital currencies pegged to real-world belongings — to facilitate cross-border commerce.
In response to Feng:
“Stablecoins supply the perfect resolution for cross-border business-to-consumer commerce.”
Stablecoins have been more and more acknowledged for his or her potential to boost cross-border funds by providing sooner, cheaper, and clear options to conventional strategies. Their adoption is seen as a major development within the international monetary panorama.
Their utilization has grown considerably this 12 months, particularly in rising and growing economies scuffling with 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.