Look, I feel it is solely a matter of time earlier than China pulls a whole 180 on its Bitcoin ban. Sure, they outlawed buying and selling and mining again in 2021, however truthfully, rather a lot has modified since then — particularly this 12 months. Bitcoin’s momentum globally has been insane.
We have seen US President-Elect Donald Trump calling to stockpile Bitcoin; Bitcoin ETFs get permitted, Fed Chair Jerome Powell calling Bitcoin “digital gold,” Larry Fink flipping pro-Bitcoin, and even Putin saying good issues about it. With all of this taking place, I would not be shocked if China has already began quietly stacking sats (shopping for bitcoin).
Here is why I feel that: China does not prefer to announce what it is doing beforehand — it is simply not how they function. Former Binance CEO CZ talked about this just lately on the Bitcoin MENA convention in Abu Dhabi, saying that whereas the US likes to make large public statements about upcoming insurance policies (like Trump asserting Bitcoin plans to courtroom voters), Asian nations desire to maneuver in silence.
And let’s not neglect China does not have elections. They need not win over public opinion like Trump does. In the event that they’re making strikes with Bitcoin, they will do it quietly — and we’ll discover out after they’re able to make it official.
Now, with Trump’s large push for Bitcoin and crypto, I can not see China sitting on the sidelines for too lengthy. That is turning into a world race, and if China desires to remain aggressive, they cannot afford to overlook the Bitcoin practice. My intestine tells me they’re already planning to unban Bitcoin and crypto — and I would not be shocked if it occurs as early as Q1 subsequent 12 months, particularly if Trump takes workplace.
One other large trace? Hong Kong. China has a protracted historical past of utilizing Hong Kong as a sandbox to check issues earlier than rolling them out on the mainland. And this 12 months, we have seen Hong Kong make main strikes — approving Bitcoin and crypto ETFs and greenlighting extra crypto exchanges. Let’s be actual: this is not a coincidence. They’re planning to eradicate crypto taxes for establishments. I feel China is watching fastidiously, and these are early steps towards a broader shift.
For my part, China has doubtless been quietly accumulating bitcoin all alongside. When the time is correct, they will unban it — and never simply to compete with the US, however to steer. Watch this area. I feel it may occur a lot ahead of most individuals count on.
This text is a Take. Opinions expressed are fully the writer’s and don’t essentially mirror these of BTC Inc or Bitcoin Journal.
