December 10, 2024
By Tsering Namgyal
Titled “Bitcoin reflects a fast-changing global financial system landscape,” the state-run China Daily newspaper published a rare opinion piece, reflecting on the price of Bitcoin surpassing $100,000 recently and how it might impinge upon the global financial system.
Interestingly, it notes the instrumental role the US cryptocurrency regulation has played in forging global crypto regulatory landscape and how the US will continue to play a leadership role in the future development of crypto and financial innovation.
“The cryptocurrency market represented by Bitcoin will become an important part of the global financial system, and Bitcoin’s market value will continue to expand with the development of the entire market,” it said.
It even said Bitcoin market capitalization will continue to expand and it will be “comparable to digital gold.”
“From the current perspective, Bitcoin’s asset attributes will become stronger, and its status is expected to be comparable to digital gold,” it said. “If the US president-elect clarifies the national strategic reserve status of Bitcoin, it will further promote the rise of Bitcoin’s market value and push it to become a global strategic asset.”
It also said that asset tokenization based on blockchain technology is expected to become an important trend, along with other financial innovations such as stable coins.
“It is foreseeable that with the continuous development of the market and the gradual relaxation of US regulatory policies, financial derivatives with Bitcoin and other cryptocurrencies as underlying assets will continue to emerge, promoting the continuous prosperity and development of the cryptocurrency market,” it added.
However, the growth of the cryptocurrency market and innovation in financial products may likely have a negative repercussion on smaller economies.
“The function of their national financial regulatory departments, and their domestic legal currency status are likely to be weakened in the process,” it warned.
About the author
Tsering Namgyal is the editor-in-chief of Blockwind News.
