Differences in Attitudes Between China and the US in the Field of Encryption: CBDC and Bitcoin Become the Focus

Recently, the attitudes of China and the United States in the fields of cryptocurrency and digital assets have shown significant divergence. On the US side, a new executive order aims to promote the development of cryptocurrencies while prohibiting the establishment of Central Bank Digital Currencies (CBDCs). Meanwhile, China continues to advance its digital renminbi project and explores new financial opening policies.

United States: Promoting cryptocurrency, rejecting CBDC

The President of the United States has signed an executive order emphasizing the importance of the digital assets industry to American innovation, economic development, and international leadership. The main contents of the order include:

1. Consider establishing a national digital asset reserve
2. Protect individuals and businesses using blockchain networks
3. Support the rights of developers and miners
4. Defend the rights of individual encryption wallet holders
5. Promote the development of dollar-backed stablecoins

However, the order explicitly prohibits the development and use of a U.S. CBDC. This decision reflects the Republican concerns about excessive government intervention in the financial industry and the emphasis on protecting public privacy.

China: Promote CBDC, Explore New Financial Policies

In comparison, China is at the forefront in the field of CBDC. As of July 2024, the digital yuan has attracted 180 million individual users, with a cumulative transaction volume reaching 7.3 trillion yuan. China is also actively participating in international cooperation, such as the mBridge project, to explore multi-country CBDC platforms.

At the same time, China is promoting openness in the financial sector. The latest policy supports residents of the 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 encryption asset industry.

Bitcoin: A Potential Key Battleground

Bitcoin has attracted attention in the policies of both China and the United States. The U.S. executive order explicitly mentions the protection of personnel involved in Bitcoin network technology. On the Chinese side, although there is a cautious stance towards Bitcoin, relevant policy developments are still being closely monitored.

Experts point out that Bitcoin, as an asset similar to gold, may struggle to meet the essential requirements of currency due to its fixed total supply and limited availability. However, as the global economic recovery faces challenges, the impact of digital encryption assets on financial stability needs to be heeded.

Future Outlook

With the rapid development of the global encryption currency and digital asset sector, the policy differences between China and the United States may have a profound impact on the global financial landscape. The United States chooses to support the development of private encryption currencies, while China continues to promote CBDC and explore financial openness. This difference not only reflects the differing philosophies of the two countries regarding financial innovation and regulation, but it may also become an important battleground for future global financial competition.