While China continues to show its negative stance against cryptocurrencies, this could be a great opportunity for the United States, Senator Pat Toomey said. He believes that the authoritarian crackdown on cryptocurrencies is also a reminder of the enormous structural advantage the United States has over China.
On September 24, the price of Bitcoin and Ether fell on the back of negative news from China. According to information from several media outlets, the People's Bank of China (PBOC) said in a Q&A on its website that all cryptocurrency-related activities are illegal. According to the PBOC, services offering trading, order matching or derivatives for virtual currencies are strictly prohibited, while overseas exchanges are also illegal. At the same time, this statement repeated the PBOC statement of September 15, 2017, so that in fact, in 4 years, the bank's position has not changed.
Constantine Tsavliris, head of research at crypto data site CryptoCompare, said the harsh rhetoric was likely to result in a “short-term sell-off as negative news presses investors to take a conservative approach.” “The recent news by China serves as an extension of previous announcements in May regarding a crackdown on cryptocurrency mining and bans on financial and payment institutions from crypto-related services,” Tsavliris told CNBC.
“As a result of the bans, we previously saw a short-term sell-off and a shift in mining away from China, followed by a swift recovery throughout July and August,” he added.
Senator Pat Toomey also expressed his position on this matter. “China’s authoritarian crackdown on crypto, including #Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China,” he tweeted.
He continued, remarking that Beijing is so hostile to economic freedom that it cannot even tolerate Chinese participating in what is arguably the most exciting financial innovation in decades. Economic freedom leads to faster growth and, ultimately, to a higher standard of living for all.
© 2021, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
