HashKey Group chairman Xiao Feng has suggested that U.S. President-elect Donald Trump’s pro-crypto policies could eventually influence China to rethink its approach to digital assets.
In an interview with the South China Morning Post, Xiao proposed that a strong commitment from Washington to support the cryptocurrency industry might prompt Beijing to reconsider its stance on crypto businesses despite its ban on crypto trading, mining, and ICOs.
Xiao suggested that, without the current geopolitical events, China might have needed five or six years to embrace crypto businesses. However, due to these factors, he believes the timeline could be shortened to just two years.
During his campaign, Trump committed to establishing the U.S. as a global leader in the cryptocurrency sector by removing regulatory barriers deemed unfavourable to the industry. He emphasized the need for the U.S. government to focus on developing the cryptocurrency market instead of “selling it off.” Trump particularly highlighted the importance of strengthening the U.S. crypto sector to maintain competitiveness with China, famously stating, “If we don’t advance it, China and other countries will.”
Xiao views this pro-crypto leanings as a potential catalyst for change in China, which has long considered cryptocurrencies a threat to its financial stability and a source of criminal activity.
However, there are no indications that Beijing is moving away from its focus on a state-controlled digital currency.
In fact, the Chinese government is advancing the rollout of its digital yuan (e-CNY). At the 18th Shenzhen International Financial Expo on November 7, the country unveiled a new digital yuan payment card. The thin card features a display screen showing transaction details and balances, along with dynamic QR codes for payments. It supports both “tap-to-pay” and “scan-to-pay” options, facilitating in-person and online transactions.
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