The publication’s analysts note that amid Beijing’s strict ban on global cryptocurrency networks within its borders, China is simultaneously making significant efforts to encourage its own digital money technologies and companies developing the blockchain sector. The government and the People’s Bank of China are actively testing the usefulness of the digital yuan and working out how to incorporate it into the country’s financial system.<br
China’s dual approach to regulating the cryptocurrency sector, as well as promoting blockchain initiatives, allows the Chinese government to maintain strict control over its domestic financial activities while exploring and taking advantage of opportunities in the global cryptocurrency market.
For example, thanks to Hong Kong’s potential as a special administrative region, China has achieved a significant presence in global digital asset markets. And Hong Kong businesses, despite the fact that their operations are tied to the U.S. dollar, have become instrumental in transforming the region into a dynamic and thriving financial center for digital assets.
In particular, China’s largest public institution, Bank of China, recently issued debt on the blockchain of Etherium through its investment arm in Hong Kong. In this way, China demonstrates its willingness to use open blockchain networks for its own purposes, while retaining control over citizens’ financial activities.
According to experts, China’s strategic moves in the blockchain industry demonstrate its determination to play a dominant role in the global market for digital assets and cryptocurrency derivatives in the future.
Earlier, Markus Thielen, head of research and strategy at crypto services provider Matrixport, said that the economic environment has significantly impacted the level of capitalization of Tether (USDT) stabelcoin, which is increasing due to the “aggressive release of the asset” in the Tron network, popular in China.