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An event in 2021 had a bombshell effect on the cryptocurrency market. News emerged that China, one of the world’s largest countries by population and economy, had banned cryptocurrencies. Although there were later reports of regional permissions for cryptocurrencies, there is still no official legal permission from the state. Despite this, a Tether official made a noteworthy statement on the subject recently.
China and Cryptocurrencies
The co-founder of Tether (USDT), the world’s largest stablecoin by market value, stated that China’s return to cryptocurrencies is “inevitable.”
In a new report provided by the South China Morning Post, a statement made by Tether co-founder Brock Pierce caused a significant stir. He mentioned that China, which banned all cryptocurrency-related commercial activities over three years ago, will eventually accept cryptocurrencies again.
Will China open up to cryptocurrencies? … I can say that it is inevitable. The real question is not if it will happen, but when it will happen.
Pierce noted that interest in Hong Kong has increased due to the Securities and Futures Commission (SFC) recently setting clear crypto boundaries for investors, and he suggested that the region could become a potential power in trade finance (tradefi).
I think Hong Kong is ahead in many ways. I believe the main opportunity in Hong Kong is in trade finance, and this is where the digital dollar stablecoin has enormous potential.
Pierce’s comments came after many cryptocurrency platforms with connections to China, which sought to obtain licenses in Hong Kong, withdrew their applications following regulations implemented by the SFC last year.
The shared report stated that the SFC declared that crypto exchanges licensed in Hong Kong should not serve Chinese citizens.
Bitcoin’s Current Price
While these comments about China’s future were made, the Bitcoin price continues to be monitored worldwide. The Bitcoin price reached an all-time high of over $73,000 in March and then declined. After dropping to $56,000, it is currently trading at $68,780 at the time of writing.
While BTC’s market cap remains above $1.3 billion, its 24-hour trading volume increased by 89%, reaching $32.5 billion.
