Community Trust ScoreVerified
China has banned banks from using bitcoin and banished so-called crypto ‘miners’ from the country. Furthermore, the Central Bank of China recently stated that it would continue to exert its pressure on the crypto market. In addition, the People’s Bank of China recently said that they would supervise financial platform companies to rectify their practices per regulations.
They are doing all this to prevent significant financial risk. And further work on decreasing the number of high-risk financial institutions in major provinces in China.
The PBOC clarified that their prudent monetary policy will be flexible, targeted, reasonable, and appropriate. They are looking to establish a good “cross-cyclical” policy design, which means authorities will use a longer time frame when considering policy support to avoid overstimulating the economy.
China is a nation that wants to keep everything under control. The decentralized nature of BTC is not encouraging to the government. The recent crackdown on tech firms and private educational firms makes this very obvious. Since China has pledged to achieve carbon neutrality by 2060, its emissions target are real. China does not prefer Bitcoin miners monopolizing their energy grid.
China used to be holding hash power as many miners were from China; however, the recent ban on the mining process has chased the hash power out of China forever. They are adopting blockchain technology. However, the Chinese government believes that crypto is a source of financial risk. China is not interested in having parallel digital currencies competing with theirs. The Chinese government has to state that uninformed investors will lose a huge amount of money. Companies have also been warned against assisting any kind of cryptocurrency-related businesses.
Software firms, which are believed to have suspicious involvement in digital currency transactions, are getting shut down. When software companies grow too big to control, the Chinese governments cuts and downsizes the company; they do not like the size of online cryptocurrency companies reaching an alarming size. The government is not interested in having money from real industry flowing to the crypto industry.
However, those who believe in Bitcoin and crypto are not giving up. They see China bans and the price reaction to be an opportunity to buy the dip. The cryptocurrency community knows it is not an easy situation, but they are not giving up, and they are HODLing.
Some are like, What if VET is the only legal crypto you can invest in China. They are talking double even triple-digit Vechain in the near future.
