Tensions are high between the world’s two largest economies, as China and the United States strategize their way through a Trade War (import/export, not buy low sell high!). While analysts are speculating and analyzing the results of the trade war, we wanted to give you an in-depth look at where the two countries stand on cryptocurrency.
- China: Just days ago, President Xi Jinping embraced blockchain technology in a speech, calling on China to advance development in the field. The market interpreted President Xi’s blockchain praises, as praises to crypto, Bitcoin rose sharply after President Xi’s blockchain praises. However, days after, The People’s Daily, a Beijing-based news outlet – is this week carrying the rolling message that China’s support of blockchain should not be misinterpreted as support for cryptocurrency.
- US: President Trump is an infamous crypto-hater. President Trump is regularly critiquing cryptocurrencies and demands that companies seek a banking charter and make themselves subject to the US and global regulations if they wanted to “become a bank."
- China: Cryptocurrency is banned in China. Initial coin offerings, foreign and domestic trading, are all banned in China. Nevertheless, China is in the process of creating its own blockchain-based currency. The details have yet to be released, but the world is anxiously waiting to see what unfolds.
- US: Bitcoin and similar cryptocurrencies are regulated as both a currency and as a security under U.S. law. Within the U.S., many states are also pursuing legislative/regulatory efforts to cover crypto instruments.
- China: Since cryptocurrency is banned in China, banks must follow national law. After cryptocurrency was outlawed, China took it a step further, requiring banks to conduct self-inspection and rectification to ensure payment channels are not being used for cryptocurrency settlements.
- US: JP Morgan created the United States’ first bank-backed coin. As JP Morgan explains on its website, "JPM Coin is a digital coin designed to make instantaneous payments using blockchain technology.” JP Morgan is not the only bank at the forefront of embracing crypto, even though other banks have yet to create their coin (yet), Cryptalker created this list of Bitcoin Friendly Banks in the US https://cryptalker.com/bitcoin-friendly-us/
As the biggest economies, the world’s eyes are on China and the United States to have a general idea of the mainstream acceptance of blockchain currencies. Despite blocking cryptocurrency trading, China is making efforts to create its own blockchain currency; meanwhile, the United States accepts cryptocurrency trading but lacks the initiative to embrace blockchain within its own government or economic system. At BXB we know that cryptocurrency is here to stay, but only time will tell which economic power takes the lead when it comes to cryptocurrency, and the future.