Industry insiders believe that U.S. President-elect Trump’s pledge to support the cryptocurrency industry may provide new impetus for China to revitalize the digital asset market.
Xiao Feng, chairman of Wanxiang Blockchain and chairman and CEO of HashKey Group, said in a recent interview with the South China Morning Post:
If the U.S. Congress and the incoming president make cryptocurrency policy clear, continue to push for legislation and promote this industry, it will surely become a driving force for China to accept cryptocurrency.
According to Xiao Feng, sanctions imposed by Washington and Western allies on Russia in 2022 to force Russia to abandon its invasion of Ukraine, including excluding Russia from the SWIFT international wire transfer system, may also persuade Beijing to support the cryptocurrency industry. He said:
Without these things happening, it might have taken China 5 to 6 years to accept cryptocurrency companies, but now, because of these factors, that timeline may be shortened to 2 years.
Beijing has maintained a strict ban on initial coin offerings (ICOs), cryptocurrency trading and mining and other related businesses over the past few years, as Chinese authorities view this area as a threat to financial stability and a hotbed of criminal activity.
Xiao Feng’s remarks reflect the renewed enthusiasm in the cryptocurrency industry after Trump was elected. During his campaign, Trump promised to make the United States the global cryptocurrency capital, including establishing a "National Strategic Bitcoin Reserve" and firing regulatory officials who opposed cryptocurrencies.
Still, the Chinese government has shown no signs that it might loosen its ban on cryptocurrencies, but Beijing has given Hong Kong the green light to push for a digital asset industry.
According to Xiao Feng, if China resumes the development of the digital asset market, it may start with a regulated stablecoin payment and settlement system. "Stablecoins are currently the best solution for cross-border B2C trade." In addition, there are also fast transaction speeds and The benefit of low handling fees.
Xiao Feng said that his team recently conducted a survey in Yiwu, a manufacturing and trading center in China, and found that almost all merchants received inquiries from buyers about whether they could use popular U.S. dollar stablecoins, such as USDT, Payments are made in USDC.
Xiao Feng once held senior positions in the Shenzhen Branch of the People's Bank of China and the Shenzhen Office of the China Securities Regulatory Commission. In 1998, he founded Boshi Fund Management Company, one of the top fund companies in China. He subsequently joined Wanxiang Group in 2011 and established the group’s digital asset arm HashKey in 2018 in Hong Kong, owner of Hong Kong cryptocurrency exchange HashKey Exchange.
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"Xiao Feng, Chairman of HashKey Group: Trump supports cryptocurrency and will help China lift the ban on the digital asset market." This article was first published on (Block Guest).
