Justin Sun, founder of Tron, is calling on China to improve its Bitcoin policies, asserting that competition with the US would benefit the entire cryptocurrency industry. This appeal aligns with former US President Donald Trump’s vision of making Bitcoin integral to the global economy.
On July 18, Sun used social media to promote better Bitcoin policies in China. He believes competition between China and the US in Bitcoin regulation would positively impact the industry. Sun's statement emphasised that China should make further progress in this area.
Bitcoin’s Strategic Importance
Market analysts suggest Bitcoin’s role as digital gold could influence global power dynamics. Trump's support for Bitcoin may prompt China to reconsider its stance on digital assets. Matthew Pines, a national security fellow at the Bitcoin Policy Institute, has noted that Bitcoin and stablecoins could counter China's digital authoritarianism and support US sovereign debt markets.
Diverging Policies
China and the US hold approximately 400,000 BTC collectively. However, their regulatory approaches differ significantly. Influenced by Trump’s advocacy, the US is rethinking its stance, whereas China has largely restricted cryptocurrency activities. Since 2017, China has banned banks and payment systems from handling digital assets, with the People’s Bank of China declaring all cryptocurrency transactions illegal in 2021.
Criticism of China’s Ban
Critics, including Professor Wang Yang from the Hong Kong University of Science and Technology, argue that China’s crypto ban could have geopolitical drawbacks. Wang urges the government to reconsider its stance on crypto mining, highlighting potential benefits in global competition with the US.
US vs. China: Policy Impacts
Trump’s support for Bitcoin might drive China to alter its policies. Analysts argue that if the US adopts a more crypto-friendly approach, it could encourage China to revise its stance. Sun’s advocacy for enhanced Bitcoin policies in China underscores the importance of competition in the crypto industry.
US and China Bitcoin Holdings. Source:Bitcoin Treasuries
Potential Benefits of Policy Change
Sun believes that encouraging China to compete with the US in Bitcoin regulation would benefit the entire industry. This competition could foster innovation, improve regulations, and create a more dynamic crypto ecosystem.
Conclusion
Sun’s call for China to improve its Bitcoin policies comes at a pivotal moment for the cryptocurrency industry. As the US shows signs of embracing proactive crypto regulation, China faces a choice: maintain its restrictive policies or adapt to the evolving global landscape. The outcome could significantly impact Bitcoin and the broader crypto market.
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