Crypto relies on global markets: Expert on China's crackdown
I i dont know the market seems to at times come to grips with uh with chinas actions, and there was nothing completely um, new or or shocking about china. Given what weve seen up to this point, probably and theyve, got their own concerns with their own currency and everything else. The question is that if china can do it, can other countries do that if, if they, for whatever reason, if the united states decided look, this is threatening our uh, the hegemony of the dollar couldnt they do it isnt that something to worry about its still. 43. 000. uh hey joe good morning, um. I think this chinas crackdown news is, first of all nothing new its been happening. You have not been allowed to convert your rmb into any sort of cryptocurrency in the last couple of years, and so i think its the old news, which gets sensationalized. It affects the market and we all start talking about it. But at the same time, i think, having a usd or a fiat currency, pecked coin versus actually going into a cryptocurrency which no individual government can just go and print is a complete different story. You can have the buckets between rmb to usd or usd to bitcoin, but at the end of the day, the cryptocurrency market is very much governed by the global uh uh global markets, which are happening and which is within crypto and the products which are getting built On it, so you could see, though there was a five percent down uh last week within the news of it.
But uh bitcoin market picked up, and especially look at ether, which has been very much purely resting on 3k, went down a little bit but picked up again right. The uh does it matter in in china whether you know whether that country decides that that bitcoin is not going to be part of the of the ecosystem, and is that, can they actually wouldnt, they have to actually enforce that, and will they like? Do they enforce that that the kids arent watching more than three hours worth of uh tv or video, whatever it is that theyre theyre enforcing, can they make? Can people still do peer to peer transactions in china or is it? Is the risk too great that they could be punished harshly, so that has always been a black box right? We are talking about a country. Even imf doesnt have a real numbers and you just have to take the artificial gdp or the inflation numbers which you get from there. This is the country we are talking about, who is basically doing a crackdown on education of all the things right, as you read as you just mentioned, uh you have hobie, you have, okay ex. You have two biggest exchanges still running out of china. You have uh, they are doing peer to peer transactions on crypto thats been going on, hobie listing is still very important. Okay x listing is still very important in the whole token economy in the crypto world.
But can you have every other shop? Okay, the only thing they say you cannot convert rmb into crypto, but if you are already in crypto anything and everything is happening there. Some of the biggest projects are coming out of hong kong. So for me it is just like again: hey. We want to stay controlled, we want to know exactly where rmb is going and where usd or any other currency coming into the country, but ultimately the beauty of cryptocurrency is that you really just cant control that you can control your borders. But this is borderless and thats what i love about cryptocurrency, what kind of uh body language are you seeing from the most recent comments from what is happening in the united states, uh, kavita and gensler regarding i dont know stable coins regarding the uh, an eventual digital Currency uh from the u.s government. What do you think is going to happen? Um, i feel like having, i always have said. Having regulations are good, give us clarity so that, wherever direction, whatever direction we go, we can go in a good way. But like going back to the same thing, which i have talked again and again uh, you have to be smart enough to do it, and we did think that gary coming teaching at mit his courses coming into the space would understand how this whole decentralized finance world Moves with four to five different and custodian wallets. You just cant, keep on taxing that if stable currency is a security, then come out and lay the rule that this is what securities are tracking down on exchanges tracking down on layer.
One solution without having clarity is my biggest problem. You have the clarity, let people decide is this the product they want to build, or is this the product they want to build in this country? You know look at what portugal, greece and some of the european countries are doing. Portugal went out and said no capital gain and losses or no capital gain taxes on crypto to attract all this talent out there. We are literally building singapore, portugal.