Cryptocurrencies could receive a boost between China and the US as US President Donald Trump signed an executive order to ban financial transactions with eight China-based payment applications. After the signing of Trump’s new executive order, popular payment apps, including Alipay, Wechat Pay and Tencent’s QQ, will be banned in America within 45 days.
According to the latter executive order signed by US President Donald Trump, Americans are prohibited from conducting transactions with eight different Chinese payment applications. Transactions processed with these apps are prohibited within 45 days, according to Trump’s latest edict. The applications under Trump’s ban include WPS Office, QQ Wallet, Alipay, Camscanner, Shareit, Tencent QQ, Wechat Pay, and Vmate.
The Trump administration claims the ban was issued for national security reasons, and it follows the executive order Trump signed to ban the China-based app Tiktok. In August, Trump signed that specific injunction against all transactions between Tiktok’s parent company, Bytedance. The latest injunction against eight different Chinese payment apps says the ban was also invoked for reasons of national security.
“The pace and ubiquity of the proliferation in the United States of certain connected mobile and desktop applications and other software developed or managed by individuals in the People’s Republic of China … continues to pose a threat to national security, foreign policy and the environment. economy of the United States., ”urges the Trump administration order.
The analyst Michael Gogel told its 4,800 Twitter followers that the executive order was being invoked because of the digital yuan and decentralized cryptocurrencies such as bitcoin. “It has everything to do with the digital yuan and digital currencies like bitcoin that US President Donald Trump signed an executive order on Tuesday to ban transactions with eight Chinese software apps, including Alipay and Wechat Pay,” Gogel tweeted.
The analyst added:
Interesting to note that on the same day the New York Stock Exchange resolves to 180 individuals and returns to the deletion action related to China Telecom, China Mobile and China Unicom (Hong Kong).
In September 2020, the bitcoin advocate, Sylvain Saurel, also wrote one blog post about Trump banning these payment apps and how bitcoin benefits from it. “Financial transactions between the United States and China, or other countries in Asia, will have to be done through a different channel,” Saurel emphasized in his blog post. “We are talking about hundreds of billions of dollars exchanged every year.”
The author further added:
Bitcoin thus fully meets the need that would arise for millions of people from the Chinese diaspora living in the United States in the event of a complete ban on Wechat. Bitcoin also has the advantage of being completely politically neutral. At a time when a new cold war between China and the United States is beginning, such neutrality is an important asset.
If the Trump administration gets away with banning transactions with these eight applications, Asian Americans and their families living in Asia will likely be negatively impacted. However, the ban could be lifted as a judge recently issued a preliminary injunction against Trump’s recent Tiktok ban as it has faced adversity. Furthermore, Reuters reports that China’s Ministry of Commerce also made a statement about the ban on payment apps, and the entity said it violates “fair competition.”
In addition, the United States Secretary of Commerce Wilbur Ross supported Trump’s decision and said he supports the president’s “commitment to protecting the privacy and security of Americans from threats from the Chinese Communist Party.”
In addition, Ross insisted that the Department of Commerce “will begin implementing the EO’s guidelines, including identifying prohibited transactions, within 45 days.”
Do you think banning eight China-based payment apps will be a boon for cryptocurrencies such as bitcoin? Let us know what you think about this topic in the comments below.
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