An adapting Chinese crypto strategy
– China, led by Xi Jinping, has been at the forefront of implementing a central bank digital currency (CBDC) and has imposed a ban on trading and mining cryptocurrencies.
– Despite the ban, the Bitcoin hash rate in China has increased, making it the 3rd largest contributor to the global hash rate.
– China has potentially nominated Hong Kong as its offshore sandbox for crypto development, attracting crypto companies away from competing Asian hubs.
US fast becoming the most repressive regime for crypto
– The United States, following China’s footsteps, is cracking down on the crypto industry without the luxury of an offshore territory.
– The head of the SEC, Gary Gensler, is seen as systematically destroying the crypto industry in the US.
– The US sees cryptocurrencies as a threat to its financial dominance, but technology cannot be repressed for long.
Crypto adoption marches on
– Despite regulatory crackdowns, the adoption of cryptocurrencies continues to rise.
– Bitcoin wallet holders have increased by 40% even during the bear market.
– If the US drives crypto companies away, other jurisdictions in Europe and Asia are ready to take their place.
Hot Take: Can central bank-influenced governments stop the adoption of crypto?
Crypto adoption is unstoppable. Despite the crackdowns by major world powers like China and the US, the technology and innovation behind cryptocurrencies will always prevail. While governments may attempt to impede progress, they cannot suppress the growing demand for a store of value and an alternative solution to depreciating fiat currencies. Crypto adoption will continue to march forward, with or without the support of central banks.
By
By
By
By
