It seemed like the FUD had ended for a while. People’s Bank of China contributes in crypto-crackdown to country’s financial literacy monthPeople’s Daily Online Beijing reports. Yin Youping, deputy head of the Financial Consumer Rights Protection Bureau of China’s People’s Bank of China, spoke at an event.
“We remind people that virtual currencies such Bitcoin are not legal tender, and have no real value.”
“The Death of China’s Bitcoin Mining Industry”, 7 takeaways from the article| “The Death of China’s Bitcoin Mining Industry”, 7 takeaways from the article
Yin Youping also classified cryptocurrency-related investments as pure speculation. He advised the public to “Be conscious of your surroundings”Virtual assets to avoid unnecessary risks and to “Protect their” walletNothing unusual coming from a bureaucrat who is fueled by decree. An interesting new piece is the Chinese crypto-puzzle.
Disclaimer: This article used Google Translated quotes and information. There are small inconsistencies that can be corrected.
What else did the People’s Bank of China have to say?
In addition to contributing to the crackdown on cryptocurrencies in China, Yin Youping has responded to the “rebound” in cryptocurrency trading in his country. The People’s Bank of China
- For “”Identify foreign traders and domestic traders“
- To block “Apps and corporate channels for business websites and apps“
- IntensifyPolitical advertising”So that everyone in China knows the law of the land.
- Establish “A standard working mechanism“And continue to crackdown cryptocurrency transactions.
- To keep “A high-pressure situation.“
The People’s Bank of China’s objective is clear. It seems to be working. Youping stated that “The popularity of virtual currency trading has fallen dramatically.“The deputy director encouraged the general public also to report,”Illegal fundraising»To the competent authorities.
BTC price chart for 08/27/2021 via Bitstamp. Source : BTC/USD| Source: BTC/USD on TradingView.com
Is this a clue to China’s crypto strategy and tactics?
Colin Wu, a Chinese journalist, gave us insider information in a thread summarizing this case.China’s popularity has fallen dramatically due to its refusal to trade and increased political publicity.“
3. China’s popularity has plummeted dramatically by blocking trade and increasing political attention.
4. With virtual currency and blockchain, you can stop illegal fundraising.
Wu Blockchain (@WuBlockchain). August 27, 2021
One of the most surprising discoveries of all is Chainalysis Crypto Global Adoption reportWhat is P2P trading?Significantly decreased“In China. We asked the question naively:
Why is the Chinese abandoning P2P trading so dramatically? Wouldn’t “government crackdown on cryptocurrency trading” instead lead to an increase in old P2P trading?
This “Situation of high pressureThe People’s Bank of China may be the answer to both of those questions. We have seen that the two “”The popularity of virtual currency trading and the popularity China ” The drop was significant. China has repressed both its largest industries as well as the general population. Bloomberg tried to explain these moves by definingThe “New Chinese Model”Like
What will China replace the Silicon Valley model if it abandons it? According to insiders, it will be less founder-focused than it is China-centric.
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This article was concluded with more questions than answers. From “Why is China surpassing its largest industries and top players? Is it all about scale?” TO “Is their crackdown against Big Tech somehow linked to their crackdown Bitcoin mining?“And to end:
One thing is certain: China is taking coordinated technological action. They seem to have a plan.
Their plan may be simpler than we thought. It is possible that the People’s Bank of China makes it very difficult for ordinary citizens to access Bitcoin. China will use repetition and propaganda to keep people in control and fear the unknown. One of Bitcoin’s prototipic adversarial situations. Bitcoin was anticipating this battle sooner than expected.
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