Changes in the Global Crypto Assets Landscape: A Comparison of Attitudes between China and the United States and the Strategic Position of Bitcoin

Recently, a series of significant developments have emerged in the global Crypto Assets field, reflecting the varying attitudes and strategic layouts of different countries towards digital assets. In the United States, an executive order aimed at promoting the development of Crypto Assets has attracted widespread attention. This order emphasizes the importance of the digital asset industry to American innovation, economic development, and international leadership, and proposes the establishment of a national digital asset reserve.

At the same time, China has also taken new measures in financial opening-up. A document jointly issued by the People's Bank of China and other departments supports residents in the Guangdong-Hong Kong-Macao Greater Bay Area to purchase qualified investment products through Hong Kong and Macao financial institutions, which may provide new opportunities for the development of the Crypto Assets industry.

In this context, Bitcoin seems to be becoming a key battleground in international financial competition. The U.S. executive order particularly emphasizes the protection of the rights of blockchain network users, developers, and miners, which is seen as an acknowledgment of the technical personnel in the Bitcoin network. The order also promises to defend the right of individuals to self-custody their digital assets, which is a positive signal for users who do not rely on centralized entities.

However, some experts believe that American policymakers may be overly narrowly focused on sanctions and macroeconomic tools such as promoting the dollar as a reserve currency. In fact, the current competition is more prevalent in smartphones and the global currency market. For example, a significant proportion of Japanese companies already accept the services of certain payment platforms.

China has also been keeping a close eye on Bitcoin policy. Some experts point out that Bitcoin mimics gold in certain aspects, but its total and incremental supply is determined by the system, which may not meet the essential requirements of currency. At the same time, some experts warn of the potential impact of digital crypto assets on global financial stability and security.

In terms of central bank digital currency (CBDC), the attitudes of China and the United States are completely different. The executive order from the United States clearly prohibits the establishment, issuance, circulation, and use of a U.S. CBDC. In contrast, China's digital yuan project has made significant progress, with its application attracting 180 million individual users and a cumulative transaction volume reaching 7.3 trillion yuan by July 2024.

The development trend of CBDC internationally cannot be ignored. According to reports, currently 98% of the economies worldwide are exploring digital versions of their national currencies, with nearly half having entered the later stages. Pioneer countries such as China, the Bahamas, and Nigeria have begun to see a rebound in usage.

However, the promotion of CBDC still faces challenges. Taking China as an example, the incentive mechanisms of payment institutions, the acceptance of merchants, and the development of enterprise use cases are all issues that need to be addressed. Experts suggest establishing a reasonable fee mechanism and exploring value-added services in collaboration with payment institutions, while also creating an ecosystem for industrial and commercial use cases.

Overall, the global Crypto Assets landscape is undergoing significant transformations, and the policy attitudes and strategic layouts of various countries will profoundly impact the future development of this sector. In this process, how to balance innovation, regulation, and financial stability will be a common challenge faced by all countries.