Although some countries, including India, are considering banning Bitcoin, an outright ban in the United States is unlikely. Wall Street has embraced Bitcoin as an asset class, and derivatives are traded on the Chicago Mercantile Exchange.

Any clampdown is likely to be wrapped in lofty language about protecting the public from scams as well as criminal and terrorist activity, and it would likely have to be accomplished by making it difficult to convert Bitcoin and other cryptocurrencies to dollars.

But faced with such trading barriers, it is likely that the cryptocurrency market would simply shift to more welcoming nations. This, analysts believe, would give China a distinct advantage, especially as it tests a digital version of the yuan.

A sign for China’s new digital currency, electronic Chinese yuan (e-CNY) is displayed at a shopping mall in Shanghai on March 8, 2021.
STR / AFP/Getty Images

An attempt to curb Bitcoin’s growth might also slow economic…

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