The competition between the digital yuan and Bitcoin has undoubtedly been bolstered over the past few months as China continues to actively expand its state-run CBDC, while the US is also accepting cryptocurrency under Trump. This ongoing financial struggle represents two completely opposed visions for the future of money. Central domination and decentralized freedom.
How CBDC adoption, US cryptography, and China’s AI policy conflict
Trump’s Bitcoin Strategy vs China’s Digital Yuan
The battle between the digital Original and Bitcoin took a very surprising turn when Trump established a strategic Bitcoin reserve of about 200,000 BTC (worth around $18 billion at the time of writing). Rather than liquidating these assets previously seized from various criminal cases, the government actually holds them as strategic national assets beside the strip of other conspirators.
Rep. Dusty Johnson said:
“This is about blockchain technology and all industries over the next 20 or 30 years, and the backend of that industry will be transformed by blockchain.”
Meanwhile, China is currently selling digital yuans in dozens of cities. In Changshu, for example, civil servants are currently receiving salaries at E-CNY, and more than 10 million merchants also accept it. China also recently announced that it will connect its digital yuan to all 10 ASEAN countries and six Middle Eastern countries.
CBDC adoption will accelerate globally
The People’s Bank of China confirmed its aggressive CBDC adoption plan in 2025, expanding it to business transactions that go beyond local commercial transactions and across borders.
The PBOC said in a press release.
“We will steadily promote the development and application of digital RMB.”
Currently, three specialised CBDC-based service centres have been established at Shanghai airports, particularly for international visitors. This really highlights China’s global ambitions for digital currency.
This ongoing digital vocation and Bitcoin competition represents the fundamental CBDC adoption challenge. Can state-controlled digital currencies coexist with decentralized cryptocurrencies like Bitcoin of the future?
US regulatory challenges
Despite Trump’s apparently code-friendly attitude, the regulatory landscape remains very controversial at the moment. The Senate has recently failed to advance the genius law for stable regulation, and opinions are undoubtedly divided.
Senator Jeff Markley criticized the bill:
“The question is whether this bill actually regulates anything. The answer is no.”
Senator Josh Hawley has expressed various concerns about the law.
“If you’re worried about what an individual is doing, how much should we worry about the world’s biggest companies being issued their own currency? Is that really what we want?”
These regulatory hurdles clearly illustrate the complex balance between digital sources and Bitcoin approaches to financial innovation in today’s rapidly changing landscape.
Freedom and Control in Digital Finance
Digital Original and Bitcoin are basically opposite plans for what the future of finance is. CBDCs will give governments greater control over the economy, make payments faster, help more people join the banks, and help reduce crime.
However, while Bitcoin can handle finances without central management, global access, and transparent processing, there is the difficulty of dealing with frequent price fluctuations and regulations.
Over 130 countries developing digital currencies are simultaneously increasing the use of cryptocurrencies around the world. The impact of China’s AI in the financial sector appears to serve the purpose of digital currency by allowing governments to better manage financial transactions.
What is currently developing is an arrangement that provides additional autonomy from traditional financial institutions where Bitcoin and similar cryptocurrencies are overseen by the government, while CBDCs take care of common financial functions.
