Hashkey CEO says Trump administration could influence China to accept Bitcoin
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Hashkey Group CEO Xiao Feng believes a pro-crypto Trump administration could pressure China to relax its stance on Bitcoin (BTC) and other digital assets.
In an interview with the South China Morning Post, Feng expressed his confidence that China’s crypto market will eventually open up, particularly if President Donald Trump and the US Congress adopt supportive policies for digital assets.
Trump’s influence
Feng argued that clear and consistent US crypto regulations would drive China to reconsider its approach. He said:
“If the US Congress and the president take proactive steps to clarify crypto regulations, continue to legislate, and advocate for the sector, this would certainly drive China to accept crypto.”
Trump has made digital assets a central issue in his 2024 campaign. He has pledged to remove Securities and Exchange Commission (SEC) Chair Gary Gensler on his first day in office and to reverse policies that, in his view, stifle innovation in the crypto industry.
The US President-elect has also proposed halting the sale of the US government’s seized Bitcoin and holding it strategically as an investment asset.
Feng’s remarks suggest that, if enacted, these policy changes could shift China’s historically negative stance toward crypto.
Stablecoins could pave the way
China has maintained strict regulations on digital assets, having banned initial coin offerings (ICOs) in 2017 and crypto trading and mining in 2021.
However, Feng suggested that China could eventually open its market to regulated stablecoins — digital currencies pegged to real-world assets — to facilitate cross-border trade.
According to Feng:
“Stablecoins offer the best solution for cross-border business-to-consumer trade.”
Stablecoins have been increasingly recognized for their potential to enhance cross-border payments by offering faster, more cost-effective, and transparent alternatives to traditional methods. Their adoption is seen as a significant advancement in the global financial landscape.
Their usage has grown significantly this year, especially in emerging and developing economies struggling with high inflation and economic uncertainty.
As of mid-2024, the cumulative market capitalization of stablecoins reached approximately $165 billion, facilitating trillions of dollars in transactions annually. Notably, over 20 million blockchain addresses engaged in stablecoin transactions each month, highlighting their increasing role in everyday financial activities.
