The People’s Bank of China Blasts Bitcoin And Crypto. Once Again.
August 27 2021 - 09:23AM
NEWSBTC
For a minute there, it seemed like the FUD was over. The People’s
Bank of China contributes to its country’s crypto-crackdown at the
“Financial Knowledge Popularization Month,” People’s Daily Online
reports from Beijing. Speaking at an event, Yin Youping, Deputy
Director of the Financial Consumer Rights Protection Bureau of the
People’s Bank of China, claimed: “We remind the people once
again that virtual currencies such as Bitcoin are not legal tender
and have no actual value support.” Related Reading | “The
Death Of China’s Bitcoin Mining Industry,” 7 Takeaways From The
Article Furthermore, Yin Youping classified all
cryptocurrency-related investments as pure speculation. He advised
the public to “consciously stay away” from virtual assets to avoid
unnecessary risk, and to “protect their “pocket.” Nothing crazy
coming from a fiat-fuelled bureaucrat. Nevertheless, an interesting
new piece in China’s crypto-puzzle. Disclaimer: This article used
Google-Translated quotes and information. Small inconsistencies are
a possibility. What Else Did The People’s Bank Of China Said?
Besides contributing to China’s crypto-crackdown, Yin Youping
responded to the “rebound” in cryptocurrency trading in his
country. The People’s Bank of China will: Work overtime to “detect
overseas exchanges and domestic traders.” Block “trading websites,
apps, and corporate channels.” Intensify “policy publicity,” to let
everyone in China know the law of the land. Establish “a
normalized working mechanism” and continue to crack down on
cryptocurrency transactions. Maintain “a high-pressure
situation.” The People’s Bank of China’s aim is pretty clear. And
it seems to be working, Youping claimed that “the popularity of
virtual currency trading has dropped significantly.” The Deputy
Director also encouraged the general public to report “illegal
fund-raising crimes” to the relevant authorities. BTC price chart
for 08/27/2021 on Bitstamp | Source: BTC/USD on TradingView.com
Does This Offer Insight Into China’s Crypto Strategy? In a thread
summarizing the case, Chinese journalist Colin Wu gave us inside
information that wasn’t part of the article. “By blocking exchanges
and strengthening policy publicity, China’s popularity has dropped
significantly.” 3. By blocking exchanges and strengthening policy
publicity, China's popularity has dropped significantly4. Crack
down on illegal fund-raising activities with virtual currency and
blockchain. — Wu Blockchain (@WuBlockchain) August 27, 2021 One of
the surprising revelations from Chainalysis’ Global Crypto Adoption
report is that P2P trading “declined dramatically” in China. At the
time, we naively asked: Why are Chinese people abandoning P2P
trading so radically? Wouldn’t the “government crackdowns on
cryptocurrency trading” cause a surge in old P2P trading instead?
This “high-pressure situation” that the People’s Bank of China
maintains might be the answer to both questions. As we learned,
both “the popularity of virtual currency trading” and
“China’s popularity” dropped significantly. China’s cracking down
on the general population as much as on their biggest industries.
Bloomberg tried to explain their moves by defining the “New China
Model” as: If China is abandoning the Silicon Valley model, what
will it replace it with? Insiders suggest it will be less
founder-driven and more China-centric. Related Reading | China
Banned Bitcoin Mining. What Happens To Small Hydropower Stations
Now? We finished that article with more questions than answers.
From “Why is China dwarfing its biggest industries and players? Is
the “China Model” just concerned with scale?” To “Is their
crackdown on Big Tech even related to their crackdown on Bitcoin
mining?“ And concluded: There’s only one thing we can know for
sure: China’s making big coordinated moves when it comes to tech.
And they seem to have a plan. Maybe their plan is simpler than we
thought. It’s possible that The People’s Bank of China is just
going to make it really really hard for the common citizen to
access Bitcoin. And, China’ll use propaganda and repetition to keep
people in check and scared of the unknown. One of Bitcoin’s
prototipical adversarial scenarios. A battle that Bitcoin expected
sooner or later. Featured Image by Bruce Röttgers on Unsplash -
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