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Reports indicate that China is considering changing its negative stance toward bitcoin and cryptocurrency, as the next U.S. administration adopts a more open policy toward the cryptocurrency industry. This shift would be a direct result of President Trump’s support for crypto.
China Considering Pivot on Its Bitcoin Strategy Due to President Trump’s Ideas
The new geopolitical and financial direction promoted by President Trump and his upcoming administration appears to be positively influencing the global perception of bitcoin, with China reportedly at the center of this trend.
President Trump’s ideas may have influenced President Xi Jinping’s views on the bitcoin issue, as China is reportedly considering at least not selling its stored bitcoin.
David Bailey, one of the aides of President Trump’s cryptocurrency campaign and CEO of BTC Inc., reported on this change, noting that it was a direct effect of Trump’s rise to power.
On social media, Bailey stated:
I was told today by someone very much in the know that President Xi has completely changed his thinking on Bitcoin in response to President Trump’s leadership.
Furthermore, Bailey explained that China would not sell its bitcoin stash anytime soon. China is currently the second country holding the most bitcoin, with close to 190,000 BTC in its reserves, only second to the U.S. However, unlike countries like El Salvador or Bhutan, China has not established a national policy to build this reserve, obtaining it through the seizure of crypto pyramidal schemes.
Xiao Feng, CEO and Chairman of Hashkey, previously mentioned this possible outcome, clarifying that a comprehensive and clear crypto regulatory framework laid out by the U.S. government could force China to make the necessary moves to unban the industry activity. Nonetheless, Feng says this would take several years to crystallize, but recognized Trump’s catalyst force in the issue.
Read more: Hashkey CEO: Trump’s Crypto Push Could Force China to Pivot
Nonetheless, China is still perceived as hostile to bitcoin and crypto, having repeatedly associated it with criminal and illegal operations, such as money laundering.
Read more: Highest Court of China Moves to List Virtual Asset Transactions as Money Laundering Tool