Trump Declares Crypto War: America Must Beat China in the Digital Power Race
U.S. vs. China in Cryptocurrency: The New Digital Race for Global Power
The global stage is witnessing a new kind of superpower rivalry—not in factories or on battlefields, but across digital ledgers and blockchain networks. The United States and China, two of the world’s largest economies, are now locked in a race to control the future of cryptocurrency and digital finance.
This week, U.S. President Donald Trump made headlines after declaring that “America must be number one in crypto—not China.” The statement, issued during a campaign rally, marks one of the most direct challenges yet to Beijing’s digital ambitions and underscores Washington’s growing determination to dominate the emerging crypto economy.
“Bitcoin, blockchain, and decentralized finance are the future of wealth and national power,” Trump said. “The United States will lead this revolution—because we must.”
 |
| Source: CryptoRover |
Trump’s fiery comments signal a new phase in the U.S.-China rivalry, one that extends beyond traditional trade disputes and into the digital currency frontier. His vision is clear: to position America as the global capital of cryptocurrency, a field where China, despite its bans, continues to wield influence through technology, mining hardware, and the global supply chain.
The Race for Digital Dominance
For years, China led the world in Bitcoin mining, commanding nearly 80% of the global hashrate before the government’s sweeping 2021 crypto ban. In contrast, the United States was once a distant follower. But that balance has shifted dramatically.
According to data from the Cambridge Centre for Alternative Finance (Q3 2025), the U.S. now contributes more than 50% of the global Bitcoin hashrate—the highest share in history. America is also home to most of the world’s major cryptocurrency exchanges, including Coinbase, Kraken, and Gemini, all operating under a maturing regulatory framework.
The U.S. government itself holds an estimated $36 billion in Bitcoin reserves, making it the largest national holder of digital assets. Several American institutions—ranging from Wall Street banks to pension funds—have also adopted Bitcoin and Ethereum as part of their investment portfolios.
Meanwhile, China’s stance remains restrictive. All forms of digital asset trading and mining remain banned under Beijing’s policies. Still, Chinese citizens reportedly hold about 194,000 BTC, valued at roughly $20.7 billion, despite the government crackdown.
Instead of embracing decentralized currencies, China has focused its efforts on the digital yuan (e-CNY)—a centralized, state-controlled version of money that mirrors some of blockchain’s technological benefits without its libertarian ethos. The e-CNY is now being tested in more than 20 major cities, from Beijing to Shenzhen, and already processes billions in annual transactions.
In contrast, the United States has taken a market-driven approach. Projects like Uniswap, Chainlink, and OpenSea have turned decentralized finance (DeFi) into a booming $120 billion industry, pushing innovation faster than regulation can catch up.
Digital Power Meets Real-World Dependency
Despite its lead in crypto innovation, Washington’s digital ambitions are still constrained by China’s industrial dominance. The ongoing U.S.-China tariff conflict illustrates how cryptocurrency power cannot yet substitute for physical trade strength.
When the Trump administration hinted at imposing 100% tariffs on Chinese goods, Beijing signaled that it might restrict rare earth exports—materials critical for semiconductor manufacturing and even Bitcoin mining hardware. China currently refines over 85% of the world’s rare earth supply, giving it enormous leverage in the global tech ecosystem.
In response, the White House quietly scaled back its measures. Tariffs on fentanyl-related imports were halved from 20% to 10%, and planned sanctions on major Chinese firms were delayed. The episode served as a stark reminder: even as America leads the digital economy, it still depends on China’s control of the tangible world.
This interdependence is the paradox of modern geopolitics. The U.S. dominates decentralized finance; China dominates the centralized production that enables it. Each superpower relies on the other’s weakness to sustain its own strength.
Divided Opinions on the Path Forward
Economists and investors remain divided on which country holds the true advantage. Critics such as Peter Schiff, a well-known market commentator, argue that China’s focus on “real” industries—energy, manufacturing, and semiconductors—gives it a more sustainable form of power. In his view, the U.S. obsession with digital speculation is a dangerous gamble that could inflate yet another financial bubble.
Others, however, see the crypto revolution as a new form of industrial revolution—one built not on machines and factories but on code and computation. Advocates claim that America’s open innovation ecosystem will allow it to shape the next generation of digital wealth, just as it did during the Internet boom of the 1990s.
 |
| Source: X |
Data supports this optimism. A 2025 Pew Research report shows that 15.3% of Americans now own cryptocurrency, and nearly 40% view it as a hedge against inflation. What was once a niche technology is rapidly becoming a mainstream financial asset, alongside gold and real estate.
Globally, governments and institutional investors are also taking note. As of October 2025, nations collectively hold 517,296 BTC, valued at approximately $55.4 billion. The launch of Spot Bitcoin ETFs in January 2024 ignited a surge of institutional interest, recording $4.6 billion in first-day trading volume—ten times faster than gold ETFs achieved in 2004.
These milestones underscore a broader shift in financial trust: Bitcoin and blockchain-based assets are no longer just speculative instruments—they’re emerging as a global store of value.
The Strategic Stakes: Control, Innovation, and Ideology
Beneath the economic and technological rivalry lies a deeper ideological divide. The United States champions decentralization, market freedom, and individual empowerment through technology. China, in contrast, prioritizes control, stability, and surveillance through its centrally managed systems.
This philosophical gap shapes how each nation approaches digital currency policy. Washington views crypto as a tool for innovation and competition; Beijing sees it as a potential threat to social and financial order.
Experts say this divide could determine who wins the digital currency war. “The future of global finance will be defined by who controls the digital rails,” says Dr. Marina Walters, a senior fellow at the Atlantic Council’s GeoTech Center. “If the U.S. can align regulation, innovation, and security, it will lead. But if China’s centralized model proves more efficient, it could rewrite the rules entirely.”
Already, China’s e-CNY trials have expanded across Asia and Africa through its Belt and Road Initiative, offering partner nations an alternative to the U.S.-dominated SWIFT system. Meanwhile, American crypto firms are pushing for broader adoption of decentralized payment networks, from cross-border settlements to smart contracts for global trade.
The outcome will not only determine who controls digital finance but also who sets the moral and political rules of the Internet’s next era.
The Final Outlook: Two Powers, Two Paths
The rivalry between the U.S. and China in cryptocurrency reflects a larger truth: technological supremacy now defines national power. America may lead in decentralized crypto markets, but it still relies heavily on China’s manufacturing capacity and mineral resources. Conversely, China may reject Bitcoin, yet it profits from producing the chips, mining rigs, and components that power the very networks it bans.
Trump’s vision of a crypto-led America is ambitious and controversial. It represents not just an economic goal but a symbolic one—to ensure that the next frontier of money is governed by democratic innovation, not authoritarian control. Whether that vision can withstand the realities of global trade and industrial dependency remains to be seen.
What’s certain is that the digital race between the U.S. and China has only just begun—and its outcome will shape the balance of global power for decades to come.
hokanews.com – Not Just Crypto News. It’s Crypto Culture.