Beijing’s crackdown on the cryptocurrency market will play into the hands of the United States. Of this opinion adhered to by Bloomberg strategist Mike McGlone.
The analyst wrote on his Twitter page that the Chinese bans will help the United States to seize the initiative and build a new digital order.
#China Banning #Crypto May Be New Digital World Order Table Setter — The U.S. may have a clear impetus to embrace cryptos and regulate the trade. The free-market capitalism of crypto assets is challenging nations like China that lack a free flow of capital and open discourse. pic.twitter.com/hcMuQqEn19
— Mike McGlone (@mikemcglone11) October 8, 2021
“The US has received a clear incentive to adopt and regulate cryptocurrencies,” McGlone wrote.
According to a Bloomberg strategist, toThe apitalism of the cryptocurrency market is challenging countries like China. This is due to the fact that there is no free capital turnover and open market access in China. McGlone also cited a graph for comparison, where there was a clear divergence between the reserve capital of Chinese banks and the market rate of bitcoin.
The US interest in legalizing the cryptocurrency market was previously hinted at by the Chairman of the Federal Reserve System (FRS) Jerome Powell. In early October, he announced that the Fed has no plans to ban cryptocurrencies and stablecoins. However, the authorities believe that stablecoins are similar to securities and therefore need to be carefully regulated.
China stepped up pressure on the cryptocurrency market in May this year. Then the country’s authorities staged a hunt for cryptominers. The result of the campaign was the complete expulsion of the largest market players from the country.
After a while, the central bank of China issued an updated regulation. According to him, foreign crypto exchanges are not allowed to provide services to Chinese citizens. The latest round of repression has already led to the closure of several large ETH mining pools.
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