Katie Haun – Cryptocurrency Investment Manager at Andreessen Horowitz, and Former federal prosecutor – called on regulators to do “the exact opposite” of what China did when it formulated ways to impose stricter regulations on the crypto industry.
Speaking to CNBC’s alpha delivery conference, Haun said it was a golden opportunity for the United States to do the opposite of what China has done. “We should be doing the exact opposite in my mind in this area of what China is doing.”
Earlier this year, China established the digital yuan (e-CNY) – the country’s first digital currency is expected to completely eliminate physical currency in circulation. The People’s Bank of China will officially regulate the new digital currency.
China is currently running a pilot test for the digital yuan in major cities of Suzhou, Chengdu and Shenzhen.
America on the right track with CBDCs
We cannot trust Bitcoin and cryptocurrencies. No central authority such as a government or a bank exists to regulate them. In addition, they are volatile. So, crypto enthusiasts agree that the Chinese digital yuan is a great way to build trust around virtual currencies.
Haun predicts that China will initiate transactions, grant and accept loans, and do everything else using the digital yuan as Stablecoin – a form of digital currency that derives its value from a currency. “[China] tie exchanges, tie loans and tie other aids to the use of their [new] stablecoin ”.
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Some critics suggest that the timing of the digital yuan is deliberate. And designed to match the country’s renewed efforts to suppress the cryptocurrency markets.
Haun applauds the United States for taking the right approach on Central Bank Digital Currencies (CBDCs). “I am happy [the US] studying CBDCs ”.
She said that while the United States is making great strides in learning CBDCs, it is “really important that policymakers and private industry in the country work together. [to make this happen]”.
Crypto industry players are not against regulation
Haun also referred to the crypto regulation debate and vehemently dismissed the fact that players in the crypto industry oppose all regulations as a “myth.”
She said the crypto industry also wants digital currencies to be regulated. He wants clear rules, “but [the industry] does not want to be treated like a monolith either ”.
Haun gave an example of NFT (or non-fungible tokens), which is a form of digital collectibles. She believes that NFTs should not be regulated as a financial product because regulations are not universal.
The former federal prosecutor also shared her disappointment with SEC Chairman Gary Gensler for berating Coinbase as they tried “so hard” to comply.
Haun is also a member of the board of directors of Coinbase.