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The crypto industry is growing by the day. While it’s easy to realize this for many people, others refuse to see it. China, in a “subtle” way, is currently at the forefront of the crypto industry while simultaneously rejecting involvement therein. Their American counterparts are still rolling around in a quagmire of regulatory uncertainty.
US Regulatory Mudpit
A large number of nations, predominantly Asian, have already gone to work in researching or developing their own form of cryptocurrency through their respective central banks. As these countries are furthering development, the US is going further and further away from it. Global innovation is being left behind as regulators flail about in their attempts to control it. If this trend goes on, the US will be left in the dust.
A Few Key Opinions
Michael Novogratz, hedge fund manager and founder of Galaxy Digital, gave his opinion about the matter yesterday. He warned that the USD would not stand up to the growing digital world. He warned that China was far more ahead in the fintech industry compared to the US, and their President publicly embraced blockchain just recently. He warns that the USD risks losing its reserve status should it not adapt and create a crypto USD as well.
And if we don’t transition to a digital world that will change. We are way behind on a crypto USD. China is coming. And coming fast. They are way ahead in fintech. Thier President just publicly claimed his support to all things blockchain. We risk losing our reserve status https://t.co/SNbBjdtvDD
— Michael Novogratz (@novogratz) November 10, 2019
Morgan Creek, Co-Founder of Anthony Pompliano, shared Novogratz’s opinion that the world was going digital. He stated that the future would lead to portfolios being completely digital. He stipulates that the investors will still hold the same asset allocations, but it will all be in digital format. Everything from bonds to stocks to commodities and currencies will be in a purely digital format. Creek reckons that such a move is simply a matter of time.
China At The Front
As part of the world throws itself into crypto and the other part pulls away from it, China is at the helm at the pro-crypto side. The country has had a rather strange relationship with how it operates concerning cryptocurrencies. For more than two years, the country has been trying to destroy cryptocurrencies within its borders. China has been head-first in the development of its own cryptocurrency as they were prosecuting it, however.
All of this is coming to a head with President Xi Jinping urging his people to embrace blockchain technology just a few weeks ago. The statement caused Bitcoin (BTC) prices to skyrocket and subsequently mandated that Chinese media explain that blockchain and crypto were two different things (but not by much).
A Matter of Time
China is making new moves, however. The Chinese Media recently pushed out an article that explained Bitcoin to the general public. Along with that, they’ve officially stopped persecuting crypto mining operations as well as putting out cryptography legislation.
China has been working on its crypto for a long time now, and it seems like the Dragon is getting ready to launch the Digital Renminbi properly. The country’s new cryptography laws will be put in effect starting next year. The Chinese cryptocurrency will probably come in that year, maybe as soon as three months after the legislation was put in effect.