China Could Be A Catalyst For Crypto Market In 2023
- China recently announced the launch of the National Blockchain Technology Innovation Center in Beijing.
- A 20% tax introduced last month by China was seen as a positive sign for crypto adoption.
Popular crypto influencer Lark Davis believes that China could play a major role in the crypto market this year by inducing a bull market. According to Davis, the opening up of the Chinese economy would serve as a catalyst for crypto in 2023.
The general idea is that when the world’s second-largest economy, which has been rather dormant for the past couple of years, opens up for business, crypto will be one of the industries to benefit. However, there are three particular catalysts that make the case for a possible crypto bull run in 2023.
The first is an NFT marketplace that was announced by China in December last year. Embracing the crypto market through a state-backed Web3 venture was a sign of the country accepting an industry that spent many years in a legal gray area. The regulated NFT marketplace brought the country a step closer to crypto adoption.
This was followed by China’s local tax authorities imposing a 20% tax on crypto investors and Bitcoin miners. The taxation brought a sense of legitimacy to the industry, considering that the country put an outright ban on Bitcoin mining back in 2020. Experts believe that this tax may pave the way for the legalization of the broader crypto industry in the future.
The latest news out of China, which may well serve as a catalyst for the crypto market, was the announcement of the National Blockchain Technology Innovation Center. This facility will be based in the capital city of Beijing and will explore core blockchain tech in partnership with think tanks and businesses operating in this space.
Lark Davis believes that these developments on the crypto front, paired with the Chinese economy opening up for business, will benefit the crypto market in 2023. China has also been working on the digital Yuan, its version of a central bank digital currency (CBDC).