China, which has long dominated other countries in Bitcoin mining power and adoption, but has also recently clamped down hard on bitcoin miners, is now being touted as the country that will likely beat the U.S in the race for Bitcoin adoption.
The CEO and co-founder of the leading cryptocurrency exchange platform Coinbase, Fred Ehrsam, in an interview with Bloomberg, has said that China could beat the United States in the battle for cryptocurrency adoption.
He made these comments in line with the fact that the SEC in recent times has shown reluctance in tackling cryptocurrency regulation or approve any crypto Exchange Traded Fund (ETF), despite the growing public interest and optimism that the recently appointed chair of the organization, Gary Gensler, would be more receptive to the proposals. Regardless, crypto enthusiasts are hopeful a Bitcoin ETF will launch in the United States, despite the regulatory chaos.
Ehrsam also stated that the US Securities and Exchange Commission could get crypto regulation wrong. He asserted that the US has long been the default financial regulator of the world as the US dollar is the reserve currency of most countries and that some of the highest valued companies in the world are US internet technology companies. How the SEC decides to handle cryptocurrency regulation could have strong ramifications for cryptocurrencies globally, notes the executive.
In contrast to the policy of the US, China has until recent times, been very receptive to Bitcoin and cryptocurrencies. Data from previous years shows that about 65% to 75% of Bitcoin mining has been happening in China, though the country has clamped down on the activity due to energy and environmental concerns.
Furthermore, Ehrsam also stated that cryptocurrency is the next internet-level big thing and has the potential to create as many if not more jobs as the internet have done.
While rebuffing the uneasiness that regulators feel concerning cryptos, he stated that there is a big chance that the US and other countries can close the gap with China, following their recent clampdown on bitcoin miners, to ensure that cryptocurrencies like bitcoin don’t become controlled by a single nation-state.
Another benefit of cryptocurrencies and blockchain Ehrsam highlighted was internet privacy. With long-standing privacy concerns as to how big technology companies handle user data, blockchain provides a unique opportunity for the user to reclaim ownership of their data. He also added that blockchain will help us “continue to own our data, while still getting all the benefits of the internet”.