HONG KONG, March 12. /TASS/. US President Donald Trump’s intention to turn the United States into a global center of cryptocurrency may become an issue for China, which is seeking to challenge the dollar by promoting the yuan, the South China Morning Post (SCMP) newspaper wrote citing experts.
Trump’s plan to turn the US into a cryptocurrency center will become a serious concern for China since it will increase the US’ leadership, facilitate cryptocurrencies’ economic integration and the development of decentralized financial systems outside of China’s control, Han Shen Lin, China country director at The Asia Group consultancy, told the paper.
Other countries, not only China, should develop a more transparent regulatory framework for attracting capital flows if they hope to keep up with the US’ ambitions with Trump as president, he said. As a global crypto hub, the US will strengthen its economic leadership even further by fortifying the supremacy of the American dollar, attracting investment flows and leading the next wave of innovations, the expert added.
Winston Ma, NYU adjunct professor in the global digital economy, shares the view, saying that global stocks of US dollars used in the overwhelming majority of global trade transactions will grow as cryptocurrency swaps expand in the United States.
China banned mining and trading in cryptocurrency, though the Chinese government supports the development of blockchain technology by introducing it for a variety of applications. According to analysts interviewed by the newspaper, China could do more with the use of a state-backed digital currency and blockchain platforms. For example, Beijing could offer accounts in digital yuan with the People’s Bank of China to other countries for quickly making payments without any intermediaries. This may be supported by the fact that the use of yuan in international payments is gathering pace in such states as Singapore, Russia, and the Gulf countries, the publication said.
US Treasury Secretary Scott Bessent said not long ago that Washington intends to maintain the dominance of the US dollar as a global reserve currency with stablecoins. Earlier, Trump signed a decree on the formation of a strategic cryptocurrency reserve of bitcoins. He said that the dollar’s status will remain stable for a long time as digital assets possessed by the US would form, as he expects, a new model of economic growth.
