For a minute it felt like the FUD was over. The People’s Bank of China contributes to its country’s crypto-crackdown in “Financial Knowledge Popularization Month”. People’s Daily Online Report from Beijing. Speaking at an event, Yin Yuping, deputy director of the People’s Bank of China’s Financial Consumer Rights Protection Bureau, claimed:
“We remind people once again that virtual currencies like bitcoin are not legal tender and have no real value backing.”
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Furthermore, Yin Yuping classified all cryptocurrency-related investments as pure speculative. He advised the public that “consciously stay awayfrom virtual assets to avoid unnecessary risks, and to Protect “their” pocket. Nothing is getting madder than a Fiat-fueled bureaucrat. Still, an interesting new piece in China’s crypto-puzzle.
Disclaimer: This article uses Google-translated quotes and information. Minor discrepancies are likely.
What else did the People’s Bank of China say?
In addition to contributing to China’s crypto-crackdown, Yin Yuping responded to a “rebound” in cryptocurrency trading in his country. People’s Bank of China will:
- to work overtime”Find foreign exchanges and domestic traders.“
- Section “Trading Websites, Apps and Corporate Channels“
- intensify”policy promotion,“To make everyone in China aware of the law of the land.
- To establish “a generalized working mechanism“And continue to crack down on cryptocurrency trading.
- Maintain it “high pressure conditions.“
The goal of the People’s Bank of China is quite clear. And it seems to be working, Yupping claimed that “The popularity of virtual currency trading has declined significantly.“The Deputy Director also encouraged the general public to report”illegal fundraising crime“To the concerned authorities.
BTC price chart for 08/27/2021 on Bitstamp | Source: BTC/USD on TradingView.com
Does it provide insight into China’s crypto strategy?
Summarizing the matter, Chinese journalist Colin Wu gave us inside information that was not part of the article. “By blocking exchanges and reinforcing policy propaganda, China’s popularity has declined significantly.“
3. By blocking exchanges and reinforcing policy propaganda, China’s popularity has declined significantly
4. Crack down on illegal fundraising activities with virtual currency and blockchain.
— Wu Blockchain (@WuBlockchain) August 27, 2021
one of the shocking revelations Chainalysis’ Global Crypto Adoption Report Is that p2p trading?dropped dramatically” In China. At that time, we naively asked:
Why are Chinese people abandoning P2P trading so fundamentally? Won’t the old P2P trading boom due to “government crackdown on cryptocurrency trading”?
This “high pressure conditionsThe People’s Bank of China believes there may be an answer to both questions. As we learned, both”The popularity of virtual currency trading” and “the popularity of China” significantly dropped. Like its biggest industries, China is tightening the noose on the general population. Bloomberg tried to explain his trick by defining “New China Model” As:
If China is abandoning the Silicon Valley model, what will it replace? Insiders suggest it will be less founder-driven and more China-focused.
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We ended that article with more questions than answers. From “Why is China dwarfing its biggest industries and players? Is the “China model” concerned only with scale?” To “Is his action on Big Tech related to his action on bitcoin mining?and concluded:
There’s only one thing we can know for sure: China takes great coordinated steps when it comes to technology. And it looks like they have a plan.
Maybe his plan is simpler than we think. It is possible that the People’s Bank of China is going to make it really, really hard for ordinary citizens to access bitcoin. And, China will use propaganda and repetition to keep people under control and fear the unknown. One of the prototypical adversarial scenarios of bitcoin. A fight that Bitcoin expected sooner or later.
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