It is typical China-style: fast, bold and big. The manufacturing capital of the world has banned “financial institutions and payment companies from providing services related to cryptocurrency transactions”. That is the only factual statement in that press release from the Communist Party. The other components are not true because China is not a passive party.
Yes, for the rise of e-yuan, a digital version of China’s currency, Bitcoin, Ether and other cryptocurrencies must make way. You may not blame them because in this world, there is fraternity when you are not rising but when you begin to rise, problems emerge. China will never trust the BTC ledger, decentralized or otherwise, and that is why the transition to e-yuan has started. For a nation which is admired and hated, depending on your GIS location, it understands the risks , and wants to manage them: move China away from Western cryptocurrency!
China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.
Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrency, such as registration, trading, clearing and settlement, three industry bodies said in a joint statement on Tuesday.
“Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” they said in the statement.
In the next coming weeks, I expect China to open online applications for vendors and agents for e-yuan. Magically, all these banned entities will qualify to move e-yuans around the world. China does not score own-goals; it knows where it is going!
Bloomberg reported that the Biden administration is stepping up scrutiny of China’s plans for a digital yuan, with some officials concerned the move could kick off a long-term bid to topple the dollar as the world’s dominant reserve currency, according to people familiar with the matter.
Recently, China has increased efforts on many fronts to put the digital yuan in circulation as soon as possible.
Now that China’s digital-currency efforts are gathering momentum, officials at the Treasury, State Department, Pentagon and National Security Council are bolstering their efforts to understand the potential implications, the people with the knowledge said.
Never use this ban to justify Nigeria’s which is a pure siddon-look ban.---
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