1 month ago
Hashkey Group CEO Xiao Feng believes a pro-crypto Trump medication could unit China to unbend its stance connected Bitcoin (BTC) and different integer assets.
In an interrogation with the South China Morning Post, Feng expressed his assurance that China’s crypto marketplace volition yet unfastened up, peculiarly if President Donald Trump and the US Congress follow supportive policies for integer assets.
Trump’s influence
Feng argued that wide and accordant US crypto regulations would thrust China to reconsider its approach. He said:
“If the US Congress and the president instrumentality proactive steps to clarify crypto regulations, proceed to legislate, and advocator for the sector, this would surely thrust China to judge crypto.”
Trump has made integer assets a cardinal contented successful his 2024 campaign. He has pledged to region Securities and Exchange Commission (SEC) Chair Gary Gensler connected his archetypal time successful bureau and to reverse policies that, successful his view, stifle innovation successful the crypto industry.
The US President-elect has besides projected halting the merchantability of the US government’s seized Bitcoin and holding it strategically arsenic an concern asset.
Feng’s remarks suggest that, if enacted, these argumentation changes could displacement China’s historically antagonistic stance toward crypto.
Stablecoins could pave the way
China has maintained strict regulations connected integer assets, having banned archetypal coin offerings (ICOs) successful 2017 and crypto trading and mining successful 2021.
However, Feng suggested that China could yet unfastened its marketplace to regulated stablecoins — integer currencies pegged to real-world assets — to facilitate cross-border trade.
According to Feng:
“Stablecoins connection the champion solution for cross-border business-to-consumer trade.”
Stablecoins person been progressively recognized for their imaginable to heighten cross-border payments by offering faster, much cost-effective, and transparent alternatives to accepted methods. Their adoption is seen arsenic a important advancement successful the planetary fiscal landscape.
Their usage has grown importantly this year, particularly successful emerging and processing economies struggling with precocious ostentation and economical uncertainty.
As of mid-2024, the cumulative marketplace capitalization of stablecoins reached astir $165 billion, facilitating trillions of dollars successful transactions annually. Notably, implicit 20 cardinal blockchain addresses engaged successful stablecoin transactions each month, highlighting their expanding relation successful mundane fiscal activities.
The station Hashkey CEO says Trump medication could power China to judge Bitcoin appeared archetypal connected CryptoSlate.
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