July 31, 2024
By Sharan Kaur Phillora
In a move that has stirred the global cryptocurrency community, Justin Sun, the founder of Tron, has called on China to reconsider its restrictive stance on cryptocurrency. This appeal follows former U.S. President Donald Trump’s recent endorsement of Bitcoin and his vision of the United States as a global leader in the crypto space.
Here’s what we know:
During the Bitcoin2024 conference in Nashville, Tennessee, Trump underscored the importance of the U.S. embracing Bitcoin and other cryptocurrencies to prevent China from dominating the sector. He warned that if the U.S. did not take proactive steps, China and other countries would seize the opportunity to lead in the crypto industry. “If we don’t embrace crypto and Bitcoin technology, China will. Other countries will. They’ll dominate, and we cannot let China dominate,” Trump stated emphatically.
In response to Trump’s comments, Justin Sun took to X (formerly Twitter) to urge China to step up its efforts in the crypto arena. “China also needs to step up. Since President Trump pushed for Bitcoin, US policies have warmed. China should make further progress in this area,” Sun tweeted on July 28. He believes that a competitive approach between China and the U.S. regarding Bitcoin policy could benefit the entire industry by driving advancements and growth.
Historically, China was a major player in the Bitcoin mining and trading sectors. However, the Chinese government has implemented strict regulations against cryptocurrency activities, including a comprehensive crackdown on Bitcoin mining in 2021. Despite these restrictions, many Chinese citizens continue to trade cryptocurrencies by circumventing the regulations. Sun argues that the perception of China’s anti-crypto stance is somewhat exaggerated and that there is potential for the country to adopt more progressive policies.
While China’s government remains cautious about virtual currency speculation, it has shown interest in blockchain and web3 technologies. In 2019, President Xi Jinping highlighted the importance of blockchain for technological development and urged for faster growth in the sector. Additionally, the People’s Bank of China has been actively developing the digital yuan, a central bank digital currency designed to provide a regulated and stable alternative to decentralized cryptocurrencies.
Sun’s call for China to enhance its Bitcoin policies highlights the potential advantages of competition between the two largest economies. With the U.S. seemingly warming to Bitcoin under Trump’s proposed policies, the global crypto community is closely watching how China will respond. Sun remains optimistic that such competition will ultimately benefit the cryptocurrency industry as a whole.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
