The anti-crypto agenda being promoted by the Chinese government does not necessarily mean that China is eager to kill the industry as a whole. But instead, it may be trying to rein in the rapidly evolving industry to compete with the US.
Following restrictions on cryptocurrency transactions in the country, China has joined the list of countries that do not like cryptocurrency transactions being used by their citizens. In comparison, countries like El Salvador have made Bitcoin a legal tender.
In this article, we will discuss:
Cryptocurrencies in USA
Across the world, the United States is seeing more opportunities after the Chinese Bitcoin ban. The SEC's latest move was a statement about the regulator's plans to control the industry. At least, it currently does not aim to restrict the use of encryption as a payment tool.
After the recent 1.600% run on Bitcoin, US financial institutions have started to take more care of the digital asset industry and attract their customers to it. It was probably the reason for the increased activity of the regulator. With full control over the sector, more institutional investors will be able to enter the $2 trillion market and feel relatively safe in it.
The support of institutional investors in the United States and the insignificance of the Chinese market, which worsened after the ban on cryptocurrency mining in several provinces, had a relatively calm market reaction; it bounced back after a 15% drop.
Digital yuan
For China, it's not in a fight with Bitcoin per se, but is trying to promote its own digital payment method. With no market competition, the digital yuan will be the only payment tool in the country – leaving the entire digital asset industry under the control of the People's Bank of China.