According to China's former Deputy Minister of Finance, Zhu Guangyao, the country is currently in a worrying position. China felt the need to adapt quickly to industrial developments cryptocurrenciesespecially after United States of America showing a more open and friendly attitude towards digital assets.
Shifting Attitudes of China and the US towards Cryptocurrencies
On September 28, 2024, the PBC Tsinghua Chief Economist Forum was held in Beijing and highlighted China's shift in attitudes towards cryptocurrencies.
Quoted from the report Sina FinanceZhu Guangyao, former vice minister of finance, emphasized the importance of studying developments cryptocurrencies carefully.
“There are indeed negative effects, and we must fully recognize the risks and their impact on capital markets, but we must study the latest international changes and policy adjustments because they are crucial aspects for the development of the digital economy,” he said at the forum.
Zhu Guangyao highlights how over the past decade, the US has considered cryptocurrencies as a serious threat to anti-money laundering and terrorist financing efforts.
However, this year, major changes occurred in US policy. Zhu revealed that in the campaign Donald Trump he openly supports it cryptocurrencieswith Trump ever insisting that the US should embrace cryptocurrenciesor risky shifted by China.
Concrete steps by a more crypto-friendly US are starting to emerge. Some of the new policies include SEC approval for list 11 Bitcoin ETFs in the stock market and futures market.
Meanwhile, other countries in the BRICS, such as Russia, South Africa, Brazil and India, have also begun to take actions to show support for the industry. cryptocurrencies.
Donald Trump: The US Should Not Be Complacent About Being Second in the Crypto Industry
China's position in the crypto industry is starting to be threatened
Bitcoin mining hashrate today it is still used as a key indicator to determine dominance in the crypto industry, making it an important factor in global competition. China, which has long been a major player in crypto mining, benefits from cheap electricity infrastructure and access to the latest technology. However, this position is starting to be threatened by the pro-crypto steps taken by the United States.
The US is increasingly active in creating policies that support the crypto industry. The state of Louisiana, for example, has taken a step forward with accept payment cryptocurrencies for government services.
This signals wider adoption of digital currencies in government operations, providing more flexible payment options for citizens.
The move is in line with a trend in the US towards the legitimization of digital assets, with steps taken to ensure transactions are converted to US dollars to avoid volatility.
Support from political figures like Kamala Harris shows that cryptocurrencies will be an important issue in the upcoming election. Harris expressed his commitment to supporting innovative technology, including digital assets.
China needs to pay attention to developments in the US and adapt in order to remain competitive in the crypto industry which is currently continuing to develop.
Uncovering the Truth Behind China's Dominance in Bitcoin Mining
Competition between China and the US is getting hotter
With the growing dynamics between China and USindustry cryptocurrencies may be entering a more competitive phase. China, which has long been known as the dominant force in the crypto space, has to face the fact that other countries, especially the US, will not remain silent.
The US's now more friendly attitude towards crypto, with political and regulatory support that supports innovation, could provide strategic advantages for them.
China, which previously focused on controlling and restricting this industry, now needs to adapt quickly. Ignoring opportunities for innovation could have fatal consequences, considering that the US has prepared a stronger foundation for the development of digital assets.
Companies in the US, such as Microstrategy started making massive investments in cryptocurrenciesand if China does not take proactive steps soon, the country risks losing momentum. [dp]
