Hashkey CEO says Trump administration could influence China to accept Bitcoin

Hashkey Group CEO Xiao Feng believes a pro-crypto Trump administration may stress 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 will ultimately 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 immediate 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 business, this will surely encourage China to simply accept crypto.”

Trump has made digital belongings a central subject in 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 that, in his view, undermine innovation within the crypto business.

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

Feng’s feedback counsel that, if carried out, these coverage modifications may change China’s traditionally detrimental angle towards crypto.

Stablecoins may pave the best way

China maintains strict rules on digital belongings after banning preliminary coin choices (ICOs) in 2017 and cryptocurrency buying and selling and mining in 2021.

Nevertheless, Feng urged that China may ultimately open its market to regulated stablecoins – digital currencies tied to real-world belongings – to facilitate cross-border buying and selling.

In response to Feng:

“Stablecoins supply one of the best resolution 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 clear options to conventional strategies. Its introduction is seen as a major development within the world monetary panorama.

Its use has elevated considerably this 12 months, particularly in rising and growing international locations dealing with excessive inflation and financial uncertainty.

By mid-2024, the cumulative market capitalization of stablecoins reached roughly $165 billion, facilitating trillions of {dollars} in transactions yearly. Notably, greater than 20 million blockchain addresses are concerned in stablecoin transactions each month, highlighting their growing position in each day monetary actions.

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