China is known to be harsh and anti-climatic when it comes to Bitcoin or any other cryptocurrency for that matter. The country has engaged in consistent trials not only approved crypto mining but also banning various crypto exchanges from the region to propose a serious competition to the crypto space. Taking a look at the matters from the past, it is evident that the recent market crash was because of China’s imminent trials to halt crypto mining at any cost which resulted in a substantial decrease regarding bitcoins hash rate, thus the Mid-May market crash. What is the ultimate play here? Does China want to introduce its own digital coin, or is it doing all this out of spite for Bitcoin and the acceleration of a decentralized economy?
China is not Willing to Get Along with Cryptocurrency
The central bank of China is as harsh on the idea of a decentralized economy as the state itself coma after all these years in the advancement crypto space as seen in the rest of the world. China’s central bank is not willing to change its perceived negligence towards Bitcoin. According to the deputy director of the financial consumer rights protection Bureau, Yin Youping, digital assets such as Bitcoin or any other cryptocurrency for that matter could not be institutionalized or considered a legal tender and, for that reason, do not hold an actual value as fiat or gold. He didn’t refrain from presenting his own fears when it comes to crypto investment that people should steer clear of crypto exchanges, digital assets, DeFi space, and NFTs (non-fungible tokens).
What was once considered the ultimate station for the crypto boom has completely denounced the idea of decentralization to its very core. It is not only shocking but extremely off-putting to see that China isn’t in any capacity willing to get along with the crypto space. The China banking and insurance regulatory commission is also part of the uprooting movement that is dedicated to issuing a strong crackdown against everything crypto, may it be mining, trading, or something else.