Former President Donald Trump recently expressed his support for digital assets during the Bitcoin2024 conference in Nashville. He made a pledge that the US government will hold onto the 210,000 Bitcoin it already possesses and any future BTC it acquires, ensuring that it will “never sell” them. Additionally, Trump outlined his administration’s plan to develop policies that will establish America as a Bitcoin and crypto “superpower.”
Tron founder Justin Sun responded to Trump’s statements by emphasizing the advantages of a competitive dynamic between China and the US in terms of Bitcoin policy. Sun believes that this competition could drive innovation and growth across the entire industry. He urged China to “step up” in response to Trump’s vision.
Historically, China has been a significant player in Bitcoin mining and trading, with Chinese miners once controlling over 70% of the Bitcoin network’s hashrate in 2017. However, China’s approach to cryptocurrencies started to shift later that same year when the government cracked down on Initial Coin Offerings (ICOs) and banned domestic crypto exchanges. Despite these restrictions, mining activities in the country continued to thrive due to low electricity costs, cementing China’s position as a key player in the global mining sector.
In 2021, Chinese Vice Premier Liu He announced a comprehensive crackdown on Bitcoin mining and trading, citing concerns about financial stability and environmental impacts. This move significantly reduced China’s presence in the global crypto market and solidified the country’s reputation as one of the strictest regulators of cryptocurrencies. While China has explored blockchain technology and digital currencies through centralized approaches, it has maintained a tough stance on decentralized cryptocurrencies like Bitcoin.
The People’s Bank of China (PBoC) has been actively developing the digital yuan, a central bank digital currency (CBDC) that aims to function as a regulated alternative to decentralized cryptocurrencies. The digital yuan is fully controlled by the state and is intended to provide stability and regulatory oversight in contrast to volatile cryptocurrencies. China’s pursuit of the digital yuan further indicates its commitment to centralized digital currencies as opposed to decentralized alternatives.
There have been rumors that China might be subtly changing its approach to cryptocurrencies through its activities in Hong Kong, which is emerging as a crypto-friendly jurisdiction with implied support from Beijing. Justin Sun’s call for China to reassess its Bitcoin policies highlights the potential benefits of encouraging competition between the world’s two largest economies. As the US under Trump’s proposed policies shows a willingness to embrace Bitcoin, the global crypto community eagerly awaits China’s response and potential shifts in its regulatory stance.
