- Trump said the US must embrace crypto to avoid Chinese industry dominance.
- Justin Sun argued that the two superpowers competing will benefit the industry.
- That may be a tall ask given Beijing’s strict crypto rules.
Tron founder Justin Sun has called on China to re-think its approach to cryptocurrency in light of former President Donald Trump’s Bitcoin support.
“China also needs to step up. Since President Trump pushed for Bitcoin, US policies have warmed. China should make further progress in this area,” he tweeted on July 28.
Sun’s comments came after Trump suggested a potential shift in US crypto policy should he be re-elected.
On July 27, Trump spoke at Bitcoin 2024 in Nashville, Tennessee, emphasising that the US must not allow China to dominate the crypto sector.
“If we don’t embrace crypto and Bitcoin technology, China will. Other countries will,” he said. “They’ll dominate, and we cannot let China dominate. They are making too much progress as it is.”
Sun, however, takes a less combative view.
“Competition between China and the US in Bitcoin policy will benefit the entire industry,” Sun said.
Sun has previously voiced hopes for China to lighten its crypto stance.
Earlier this month, he maintained that the perception of the extent of China’s anti-crypto stance is overblown.
Chinese crackdown
Beijing has heavily restricted crypto activities, although trading remains popular as many citizens bypass its restrictions.
The government maintains a strict stance against any activities that promote speculation in virtual currencies or “deviate from the needs of the real economy.”
In September 2021, China cracked down on cryptocurrency mining, which led to a mass exodus of mining operations from the country.
While major cryptocurrency exchanges like Binance and OKX originated in China, they are no longer welcome there.
While cautious about virtual currency speculation, Beijing invests heavily in blockchain and web3 technologies.
In 2019, President Xi Jinping emphasised the importance of blockchain for technological development and urged faster growth in the sector.
Muted response
Interest in Trump’s comments in China has been muted.
On the Chinese social media platform Weibo, the hashtag “Trump Supports Bitcoin” garnered 3.7 million views.
That is a modest number compared to other trending topics, such as South Korea accidentally being introduced as North Korea at the Olympics, which amassed 29 million views.
Trump’s Bitcoin support led some Weibo users to interpret it as a lack of confidence in the US dollar.
China is actively pursuing a policy of global de-dollarisation.
“It feels like Trump wants to make Bitcoin completely controlled by the United States,” one user remarked.
Callan Quinn, DL News’ Hong Kong correspondent, covers the crypto industry in Asia. Have a tip? Contact the author at callan@dlnews.com.