Look, I think it's only a matter of time before China comes full circle on its bitcoin ban. Yes, they banned trading and mining in 2021, but honestly, a lot has changed since then, especially this year. bitcoin's momentum globally has been crazy.
We have seen US President-elect Donald Trump call for accumulating bitcoin; bitcoin ETFs Approved, Says Fed Chair Jerome Powell <a target="_blank" href="https://www.forbes.com/sites/digital-assets/2024/12/08/us-treasury-names-bitcoin-digital-gold-after-price-explosion/”>vocation
Here's why I think that: China doesn't like to announce in advance what it's doing; That's just not how they operate. Former CEO of Binance CZ spoke of this recently at the bitcoin MENA conference in Abu Dhabi, saying that while the United States loves to make big public statements about upcoming policies (like Trump announcing bitcoin plans to woo voters), Asian countries prefer to act quietly.
And let's not forget that China does not have elections. They don't need to win over public opinion like Trump does. If they are taking action with bitcoin, they will do so quietly and we will know when they are ready to make it official.
Now, with Trump's big push for bitcoin and cryptocurrencies, I don't see China on the sidelines for long. This is becoming a global race, and if China wants to remain competitive, it cannot afford to miss the bitcoin train. My gut tells me that they are already planning to lift the ban on bitcoin and cryptocurrencies, and I wouldn't be surprised if that happens as early as the first quarter of next year, especially if Trump takes office.
Another big clue? Hong Kong. China has a long history of using Hong Kong as a testing ground to test things before rolling them out on the mainland. And this year, we've seen Hong Kong take important steps: approving bitcoin and cryptocurrency ETFs and giving the green light to more cryptocurrency exchanges. Let's face it: this is no coincidence. They are planning to eliminate cryptocurrency taxes for institutions. I think China is watching closely and these are the first steps toward broader change.
In my opinion, China has likely been quietly accumulating bitcoins all along. When the time is right, they will eliminate it, and not just to compete with the United States, but to lead. Watch this space. I think it will happen much sooner than most people expect.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
