US and China, in separate corners, wrestle with cryptomania’s excesses
- Washington has moved slowly in regulating digital currency, while Beijing recently banned it outright, introducing a state-led version under government control
- Both nations share concerns over the risk of tax evasion, money laundering, terrorism financing and bitcoin’s impact on monetary policy
The craze has inspired Selfiecoins, Potcoins and UFOCoins, fuelled a failed bid to buy a rare copy of the US Constitution, inspired legions of confusing jargon and prompted dozens of nations to consider creating their own official version.
To say the world of cryptocurrency, blockchain and central bank digital currencies is rife with hype and hoopla is an understatement.
“There are a lot of warning signs and flashing lights,” says Gary Gensler, chairman of the US Securities and Exchange Commission. “It’s more like the Wild West.”
But cultlike adherents believe this brave new world is as revolutionary as China’s invention of paper currency a thousand years ago.
One thing most agree on: the US$2 trillion market is not going away any time soon.
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Cryptocurrency volatility highlighted by China’s recent crackdown and Elon Musk comments
As consumers, investors and regulators grapple with the explosion of digital currencies and their underlying blockchain technology, the world’s two largest economies are scrambling to harness its promise while restricting its excesses.