Cryptos

The People’s Bank of China explodes Bitcoin and Crypto. Another time.

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It seemed like the FUD had ended for a while. People’s Bank of China contributes during “Financial Literacy Month”. Reports from People’s Daily OnlineBeijing. 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 you once more that virtual currencies like Bitcoin are not legal tender and do not have any real value.”

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Yin Youping also categorized all cryptocurrency investments as pure speculation. He advised the public “Stay away from temptation”Virtual assets to avoid unnecessary risks, and to “Protect their” pocketsNothing extraordinary coming from a bureaucrat fuelled by decree. Nevertheless, this is an interesting piece for the Chinese cryptopuzzle.

Disclaimer: This article used Google Translated information and quotes. It is possible to have small inconsistencies.

What else did People’s Bank of China mention?

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 goal is very clear. It seems to be working. Youping claims that “The popularity of virtual currency trading has fallen dramatically.“Deputy director encourages the public 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, provided inside information to us that was not included in the article.China’s popularity has fallen dramatically due to its refusal to trade and increased political publicity.

One of the most surprising discoveries of all is Chainalysis CryptoGlobal Adoption ReportWhat is P2P trading?Dramatically decreased“In China. At the time, we asked 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 “High pressure situationThe People’s Bank of China could be the answer to both of these questions, according to its argument. We know that the two “The popularity of virtual currency trading and the popularity China ” It dropped by a lot. China is repressing both its largest industries and the general population. Bloomberg attempted to explain these moves by definingThe “New Chinese Model”Like

What will China replace the Silicon Valley model if it abandons it? Insiders predict it will be less founder-focused, and more China-centric.

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This article ended with more questions than answers. From “Why is China surpassing its biggest industries? Is it all about scale?” TO”Is their crackdown against Big Tech somehow linked to their crackdown Bitcoin mining?“And to conclude:

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 scenario. Bitcoin was anticipating this battle sooner than expected.

Featured image by Bruce RöttgersOn UnsplashCharts by TradingView




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