Is the US giving the crypto advantage on a platter to China?
When it comes to dominating the world of business every country wants to put the foot on the accelerator and take as much market share as possible.
With this being said both USA and China go to great lengths to capture as much of the global market as possible.
Why things are different when it comes to crypto?
The world of crypto and blockchains can be daunting to many. Yet it is full of opportunities. In a world that is struggling with inflation and growth crypto can give the much needed financial growth.
This is no means by way of looking at crypto as a speculative asset rather by way of nurturing the sector and supporting it to grow.
The old world economy looks crypto as a threat
It is quite ironic that the lawmakers of large economies see cryptos as a threat. Perhaps it is because they cannot fully understand its potential and see it more of a threat rather than a great opportunity that the sector as a whole presents.
China has been anti crypto for quite some time
From banning mining to cracking down on crypto ownership the Chinese authorities have been very strict with crypto regulations.
Is China doing a U turn on crypto?
China was once a land where crypto thrived but all that changed when the Chinese authorities started cracking down on anything related to crypto.
Be it mining crypto, owning or trading crypto none of these activities have been welcome in china.
Chinese court recognizes the legality of crypto
As per a Chinese court ruling which comes as a surprise to many the judge says that cryptocurrencies are considered legal property and they are even protected by law.
Now China is not a state where anything or anybody is above the government. If a judge makes such a statement then it is possible only after the approval from the government.
The news sure comes at a time where China has been trying to promote Hong Kong as a crypto friendly region
The US has been tough with crypto regulations
The stand that the Fed and the US government have towards crypto has been quite hostile.
Instead of supporting it there has been a commentary to curb its growth.
Industry needs support to grow
If a particular industry does not get the support of the government then either it dies or simply migrates to a more supportive environment.
The BUSD's discontinuation is a result of the US taking a tough stance against Binance.
Even though Paxos was managing and issuing BUSD, its discontinuation going forward has prompted Binance to discontinue BUSD.
Now BUSD has a market cap of $2,844,851,493 and its dominance in the stable coin market is declining.
So all the money locked under BUSD would move to other stablecoins.
Binance is offering a 1:1 exchange of BUSD to FDUSD at zero fee.
Have you wondered who operates and manages FDUSD?
FDUSD stands for First Digital USD that is a business run from Hong Kong a Chinese area that is crypto friendly and inviting crypto businesses.
This switch of stable coins may be a zero fee operation for the end users who are holding BUSD however is not a lost opportunity for Paxos which operates out of the US?
Did the USA just drive away a huge business opportunity from its land to HongKong?
The answer looks to be a yes because all the Paxos managed business is going to move to a Chinese territory.
This is just one example a glaring one for sure and there would be numerous instances of businesses moving out of USA to either China or other crypto friendly region like Dubai.
All this is coming at a tough time for USA
USA goes to elections in 2024 and currently the economic challenges are plenty for a country which is known as the land of opportunities.
In addition, countries in the BRICS are trying to do international trade without the use of the US dollars.This puts the US$ at great risk of losing both its value as well as its dominance.
With so many challenges that the country and its currency faces on the economic stage and the ever increasing risk of de-dollarization could the US government do better by being a bit softer on crypto businesses and giving them more friendlier turf to operate ?
Final thoughts
The current US stand of not being a crypto friendly government is surely giving a great opportunity to China which after its hard stand on crypo is softening its outlook and encouraging businesses to move to crypto friendly territories like Hong Kong.
Posted Using LeoFinance Alpha
Although, you are not wrong, one of your assumptions makes all of this not right.
We don't live in that kind of world. The US is not America.
And The US politicians do not do anything for America.
The mother WEFers has a plan to destroy America. And so, The US will not do anything that helps the people, like approving crypto, or working with it. In fact, those mother WEFers want nothing better than to control and destroy decentralized crypto.
China was supposed to be the new great power which the mother WEFers would hide behind, but they got double crossed there. However, the CCP wants control just as much as the WEFers.
So, all of this jockeying about is not out of love or hate for crypto, it is about control. And they are playing a fine line between keeping it above board, and forcing it underground where they can never get rid of it.
Point Noted :)
It is all about control.
It's very clear. Both China and US clearly understands the power of cryptocurrency and how it can aid business growth, but China seems to see it has an opportunity for securing market dominance.
Clearly, US sees crypto as a threat which has resulted to several issues between sec and exchanges.
The US can clearly see a stone coming straight at them, and at the same time, they are too shy to go back to their vomit
I was confused to find my special Hong Kong retailer was able to tranact in Crypto again after a few months of an apparent ban. Another friend in Hong Kong seems to verify that. Hong Kong will take the business if the US won't. I'm loking forward to more shopping.
Just a proof we stay in an evolving and ever changing world of crypto:)
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