The Effect of China on Cryptocurrency Views: A Survey Experiment in the United States and Taiwan

Abstract

China, the world’s second largest economy, is constantly evolving its financial system. When China takes a position on cryptocurrency—the next wave of financial revolution—does it change how people think about the digital asset? This paper analyzes this question using parallel survey experiments conducted in the United States and Taiwan, chosen for their strategic importance to the global economy. The United States needs to win the crypto race to maintain USD dominance. Taiwan has power over semiconductor manufacturing. Survey participants were randomly assigned to either (1) a headline of China expressing pro-crypto views, (2) a headline of China expressing anti-crypto views, or (3) no headline (the control condition). In the United States, both treatments increase concern that cryptocurrency is a form of government control. In Taiwan, reactions are structured by political affiliation. DPP members oppose China’s view, KMT supporters are more supportive and TPP members are mostly unchanged. The upshot is clear: China matters, but not equally everywhere.