First the mining companies, then the banks and crypto trading platforms – now the anti-crypto appeals are going straight to the Chinese people.
The fact that China is preparing the ground for its own digital central bank currency (CBDC) and therefore taking very consistent action against Bitcoin and crypto currencies is not a particularly steep thesis. Previous and current measures show in which direction the journey should go.
Urgent appeals to the Chinese people
Our colleagues from Cointelegraph came across an interesting “media briefing” in which the Chinese central bank (People’s Bank of China) emphasizes that China will continue to act with “high pressure” against the crypto trade.
In a media conference, the Deputy Director for Consumer Protection at the Central Bank of China (PBoC) emphasizes, Yin Youping, the warning:
We remind people once again that virtual currencies like Bitcoin are not legal tender and have no real value
Youping describes virtual currency-related transactions as pure speculation and appeals to the public who should “raise their risk awareness, stay consciously away and protect their pockets”. Warnings like these should be understood less as friendly recommendations and more as clear guidelines for action in China.
The consumer advocate announced that the Chinese central bank will maintain the situation of high pressure against Bitcoin and other cryptocurrencies and will continue to take action against transactions related to virtual currencies. According to Yin Youping, “consistent crackdown on the use of virtual currencies” will continue to be on the agenda in China in the future.
The informative media briefing from August 27, 2021 can be read in full here. If you are a bit out of practice with the Chinese language, the Google translator has advice.
China’s digital central bank currency with no competition
China is very far ahead in the field of digital central bank currencies (CBDC Central Bank Digital Currency) and has been using the digital yuan in various test markets and scenarios for months.
The great progress made in recent months may have contributed to the decision to gradually let the air out of non-governmental cryptocurrencies. China wants to help the digital yuan to make a breakthrough, certainly nationally, and also across borders. It is obvious that Bitcoin and other crypto currencies are only a nuisance. Although a CBDC and Bitcoin are not directly comparable, China certainly has no interest in leaving the population spoiled for choice – the digital yuan is set and therefore also law.
In addition, China’s digital currency is also a prestige project for the country. The huge lead with which China has long left the USA and Europe behind is to be effectively demonstrated to the world at the 2022 Winter Olympics in Beijing. There, the digital yuan is to be used as an official means of payment. Competition in snow and ice at the Olympics cannot be prevented, but competition for the digital yuan can. This is exactly what China is currently working on.