U.S. should do ‘exact opposite’ of China on crypto, says Andreessen Horowitz’s Katie Haun – CNBC

U.S. should do ‘exact opposite’ of China on crypto, says Andreessen Horowitz’s Katie Haun – CNBC

Katie Haun, Andreessen Horowitz general partner.

Source: Andreessen Horowitz

In considering how to regulate the crypto industry, the U.S. should look to China for what not to do, said Katie Haun, a partner at Andreessen Horowitz.

“This is an opportunity for the United States, because we should be doing the exact opposite in my mind in this realm of what China is doing,” Haun, a former federal prosecutor who now helps manage Andreessen Horowitz’s crypto investments, said on Wednesday at CNBC’s Delivering Alpha conference.

Earlier this year, China created its own digital currency, the digital yuan, which is being controlled by the People’s Bank of China. The currency aims to replace some of the cash in circulation. China has run real-world trials for the digital currency in a number of cities including Shenzhen, Chengdu and Suzhou.

Bitcoin and cryptocurrencies, by design, are not controlled by a central authority like a bank or government, and crypto enthusiasts generally say that’s the only way they can be trusted.

Haun predicted that China will “tie trade, tie loans, tie other assistance to the use of essentially their stablecoin,” which is a type of digital currency that’s often backed by a currency. Some have linked the timing of the digital yuan launch to Beijing’s renewed efforts to crack down on the wider crypto market.

Haun said the U.S. has, so far, taken the right approach on central bank digital currencies, or CBDCs.