In the context of increasing competition between major powers - from military conflicts, treaty breakdowns to trade wars - a new front is gradually taking shape: the race to control the future of the global monetary system. Unlike traditional confrontations, this competition's focus revolves around the nature of currency - especially who will lead the digital asset and cryptocurrency space in the digital era.
By 2025, the world is witnessing two distinct approaches. On one side, the US, under President Donald Trump's leadership, advocates for strengthening the strategy of accumulating cryptocurrencies like Bitcoin and Ethereum, viewing them as strategic national assets. On the other side, China pursues a completely opposite path: developing a central bank-issued digital currency (CBDC) - the digital yuan (e-CNY) - with centralized infrastructure tightly controlled by the state.
The contrast between these two approaches not only reflects technological differences but also represents two financial ideological paradigms: one side oriented towards a decentralized, permissionless network not controlled by a single entity; the other prioritizing a programmed money flow model within state governance, serving macroeconomic stability and comprehensive financial control.
US Cryptocurrency Policy in 2025
In March 2025, President Trump signed an executive order establishing the "Strategic Bitcoin Reserve", where approximately 200,000 BTC - equivalent to about 18 billion USD as of April 2025 - was allocated from cryptocurrencies seized in criminal cases. These Bitcoins cannot be sold on the market but will be held long-term as a national asset serving long-term financial security objectives.
Notably, this initiative does not use public budget but utilizes seized assets - a measure to avoid creating political pressure on tax revenues. Simultaneously, the US Treasury and Commerce Departments are tasked with researching options to expand the reserve, on the condition of not increasing federal budget deficit.
Along with Bitcoin, the US government also established a "Digital Asset Reserve" including other cryptocurrencies like Ether (ETH), Solana (SOL), XRP, and Cardano (ADA). Also formed from seized assets, but unlike Bitcoin - which has a long-term storage role - this digital asset portfolio is more flexible: the government can actively buy, sell, or hold depending on market fluctuations and policy objectives.
The long-term goal is to enhance the US role in establishing global standards for digital assets and strengthen its strategic position in the decentralized financial space.
The Trump administration's strategy also includes adjusting law enforcement policies, appointing personnel with positive blockchain technology perspectives to management positions, and promoting high-level policy dialogues.
A prime example is the first cryptocurrency asset summit held at the White House, involving representatives from exchanges, blockchain projects, and investment funds. This is a symbolic step to recognize the cryptocurrency sector's role in the modern economic structure.
Additionally, some controversial proposals were introduced, such as dissolving the national task force for digital asset law enforcement within the Justice Department. Despite causing debate, this move reflects a strategic shift from risk management to industry growth promotion.
Notably, the "BITCOIN Act" is being considered, wherein the US Treasury could be authorized to purchase up to 1 million BTC - equivalent to approximately 5% of the global total supply, estimated at over 88 billion USD.
China's e-CNY Strategy
In contrast to the US approach, China is deploying a completely centralized model, using e-CNY as the core of its national digital financial strategy. Developed since the early 2010s and piloted in multiple cities, e-CNY is now used in dozens of major cities for daily transactions like salary payments, consumer payments, public transportation, and transactions with state agencies.
In some localities like Chengdu city, civil servants receive salaries by default in e-CNY. By the end of 2024, over 10 million merchants in at least 17 provinces and cities have accepted this currency as an official payment method.
Not limited to the domestic market, China actively promotes e-CNY in cross-border transactions. Through initiatives like Project mBridge - collaborating with central banks of Thailand, UAE, and Hong Kong - e-CNY is being tested as an alternative cross-national payment system independent of SWIFT or USD-denominated currencies.
The ability to operate offline via NFC or Bluetooth, support smart contracts, and integrate directly into the domestic payment ecosystem makes e-CNY a dual-strategic tool: enhancing domestic control while facilitating user convenience.
A notable example is PetroChina's first international oil transaction using e-CNY through the Shanghai Petroleum Exchange in October 2023. In Hong Kong, citizens can open an e-CNY wallet with just a phone number and personal identification, without needing a mainland bank account - a significant step in the currency's internationalization roadmap.
CBDCs and Cryptocurrencies: Two Opposing Paradigms
CBDCs (Central Bank Digital Currencies) like e-CNY represent digitized legal tender, issued and controlled by the state. In contrast, cryptocurrencies like Bitcoin and Ethereum operate on decentralized blockchain networks, not under any country's governance.
Advantages of CBDC:
- Macroeconomic Governance Effectiveness: Allows control of cash flow, designing policies to stimulate or restrict consumption by programming monetary value.
- Optimizing Payment Costs: Reducing dependence on traditional intermediary systems.
- Enhancing Financial Inclusion: People without bank accounts can still access the financial system through CBDC wallets.
- Combating Money Laundering and Tax Evasion: Transparent, traceable transactions.
CBDC Limitations:
- Privacy Invasion Risk: Transactions can be comprehensively monitored by the state.
- Negative Impact on Commercial Banks: If people withdraw money from banks to transfer to CBDC wallets.
- Technical and Political Challenges: Infrastructure must ensure safety, scalability, and widespread acceptance.
Advantages of Cryptocurrency:
- Borderless and Decentralized: Users can transact without intermediaries.
- Financial Self-Governance: Owners control their entire assets.
- Security and Transparency: Transactions are permanently recorded on the blockchain ledger.
Cryptocurrency Limitations:
- High Price Volatility: Limits ability to use as a stable payment method.
- Legal Barriers: Still operating in gray areas in many countries.
- Environmental Issues: Some mechanisms like proof-of-work consume significant energy.
It is highly likely that the global financial future will not completely lean towards CBDC or cryptocurrency. Instead, a "two-tier" model may emerge, where CBDC takes on roles in official transactions – such as paying subsidies, collecting taxes, managing policies – while cryptocurrency exists in parallel as a free, flexible, and risk-preventive option for users.
As of early 2025, over 130 countries are researching or implementing CBDC. China leads with e-CNY, while the US, Europe, India, and Brazil are also accelerating. Meanwhile, cryptocurrency assets continue to increase global adoption and acceptance. For example, in Argentina, Nigeria, and Ukraine, cryptocurrency has become an alternative financial means under unstable economic conditions.
The competition between CBDC and cryptocurrency is not just a technological or financial battle, but also a manifestation of future economic organization models: centralized control or distributed freedom. The final decision – by users, policymakers, and markets – will reshape the entire global monetary order in the coming decades.
