A White House executive order to lay out a national policy for digital assets should help boost credibility for cryptocurrencies, but concerns that decentralised finance technology can help evade sanctions still lingers for policymakers and investors.
Greater familiarity, institutional support, and budding public interest for cryptocurrencies suggest that 2022 could be a banner year for digital assets. Will encouraging momentum continue, or will new virtual money eventually be faced with old money problems?
Even if Bitcoin is embraced by other emerging economies, trade ties with China, volatile price swings, and the not-so-distant memory of a regional financial crisis may prevent cryptocurrency from ever taking off in Asia.
Chinese indices have delivered mixed results this year, with mainland bourses outperforming their offshore counterparts. As Beijing’s regulatory oversight tightens, there is little reason to believe that this trend will change.