This week, Tether co-founder Brock Pierce mentioned that China will inevitably open up again to cryptocurrencies, standing on the cusp of a crypto revolution.
In an interview, he emphasized that economic factors and growing interest among Chinese citizens and businesses will drive this change. Pierce stated, "Is China going to open up? ... I'd say it's inevitable. It's a question of when."
Pierce underscored that this shift is not merely speculative, pointing to the increased adoption of blockchain technology and digital payments in China, which sets the stage for broader cryptocurrency acceptance. China's government has already made significant strides with its Digital Yuan initiative.
Despite current strict regulations, Pierce is optimistic that China's technological advancements will lead to a more open stance on crypto. He highlighted that China's blockchain initiatives are among the most advanced globally, which would facilitate the transition to accepting cryptocurrencies.
Pierce also noted the strategic advantages of China adopting crypto, suggesting it would enhance China's position in the global financial system. As major economies integrate digital currencies, China wouldn't want to be left behind, a crucial factor driving eventual policy shifts. However, Pierce did not mention China's ongoing efforts to implement the Digital Yuan (CBDC), a stablecoin that could significantly alter the crypto landscape in China if successful.
In September 2021, China implemented a comprehensive ban on cryptocurrency activities, including trading, mining, and ICOs. The People's Bank of China declared all cryptocurrency-related transactions illegal, marking the culmination of years of increasing regulatory pressure on the crypto industry.