In a report published by South China Morning Post, PBOC, The People Bank of China announces that it will block completely access to all cryptocurrency exchanges, being them local or foreign. In other words, overseas exchanges will now be blocked by China's famous Great Wall, a giant firewall isolating the country in its own version of the internet.
From the site cited above:
To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs,” said an article published on Sunday night by Financial News, a publication affiliated to the People’s Bank of China (PBOC).
I think this has two consequences:
first, by banning it, China throws crypto trading in a riskier area than it could be. That will push people to make desperate attempts at circumventing the law. Regulating it, even in a very restrictive way, could have been more beneficial. I'm sure China officials analyzed this for months and they are sure now that their surveillance machine is up to the task. I have my doubts, but what do I know...
second, this increases the chances for China to issue its own, state-backed cryptocurrency. If we look at how the internet evolved behind the Great Wall, we see versions of all major Western outlets, catered to the local market, like Baidu, WeChat and so on. So a blockchain-paired Renminbi could arrive sooner than we think.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Not what we needed at a time when crypto is down so low already, but when the price goes lower, it opens more buying opportunities. Time to sell a kidney to get cash to buy crypto? Heh.
I wonder when China might introduce their currency. Do they wait to work out all the kinks, or do they become the first country to market and figure out the other stuff as they go?
Don't say that publicly! You will end up in China missing a kidney and all of your crypto.
Ha ha ha, it could happen. Not to me though. I know Liam Neeson. He would bail me out. :D
China was the only one who didn't joined the party till now finally they come in to spread the FUD
One day they ban , the next moment they join. When will this game ever end
Yes, but the banning is of competitors. If you had a business that printed currency and someone else opened a business that created a different kind of currency that was taking legitimacy away from you, why wouldn't you shut it down so you could keep your profits? Why do you think it took electric cars so long to make it to market? The companies that owned the technology didn't WANT electric cars because it would have taken money away from them.
A worldwide coup on crypto may be underway; starting with the biggest 'threat'... BTC. China isn't the only nation in the East focusing on banning crypto.
The recent drop in the stock market seemed to 'coincide' with the BTC plummet. I could be wrong about this. Either way, the USD isn't going to stand idly by without push back. The cat (crypto) is out of the bag; and, it's not going back inside as long as it's fed (no pun intended). Unfortunately, it will be like an underground railroad. It will force those wanting freedom to hop aboard.
Peace.
China is the Giupetto of currency. Always pulling the strings.
Surveillance aside, it's probably a testament to the power of cryptocurrency that China didn't ban them a long time ago. I would think crypto would be a greater threat to a communist country than elsewhere. Which makes me believe that just like trading with the west and keeping entrepreneurial centers like Hong Kong going that crypto has up until now benefited the regime overall.
So, aside from some bad actors in crypto, and then rumored bad actors, what's changed?
I think you're right in saying a blockchain based in their currency is closer at hand than not, which will be an interesting thing to watch, since it will not be decentralized or intended for any other use than to further bind the Chinese.
No, why?
Money is the base of the capitalistic system, not a "communistic".
Yep, that's just the reason why "new", "easier" to transact money is a threat to communism.
If people in that kind of system are able to gain more personal wealth, the system is going to collapse. In communism, "everything is owned by everyone", so personal wealth kills that!
That was my thought exactly. Now if somehow China bends crypto to their own will... I don't know what that looks like, based on all the reasons why crypto exists, especially Steem, with decentralization and market based principles, but if there's a possibility of making people believe they are free or freer than they really are, that might be how a centralized crypto evolves? Maybe by assuring stability? I would hope people would see right through that, but then, even now, we have many who believe crypto is only good for speculation, or pump and dumps. And the market of recent months isn't helping that perception.
Just fyi, the tax havens are ALL in capitalistic countries and none in "communistic".
The easyness of transfer is only a valid point if you can use it, and then it doesn't matter for the government if you used cash, card, or coin.
It's going to get hairy. HODL until the wheels fall off. It's like a derby. You just keep going until your wheels or your limbs fall off. China is SUCH a jerk when it comes to currency. Speaking on business and not at all in cultural terms, China tends to sneak up from behind and they are all about timing.
When I learned that Binance was based in China, requiring a Gargoyle certification, I realized that they were gathering data, primarily on their citizens worldwide.
Speculative; but, I sense is truth.
Peace.
If I would have to guess it is related to the social credit.
When that system is working universally, they will allow crypto again. Maybe you will get minus points when using "unofficial", "anonymous" cryptos?
Sesame Credits is really relevant to this move, no doubt. Good catch, I did not even think of that.
Sesame is only one of several systems. And privately owned.
But they will undoubtedly be all connected in some way, like the big ad provider today. They all know everything about you.
Is that even at work? I thought it was a proposal.
Sesame is is a firm, and their credit system is working for years, as are their competitiors.
afaik the government is still in the "search" phase of deciding which they want to use themselves, but I am not into this topic. Not for the details.
Damn it , just when I'm warming up to the Chinese they gotta go shit on the decentralized system again.
This news will for sure influence the market in a bad way for the short term, I was sure of such information this weekend, more red to come :(
I wonder if they will be able to enforce it. The crypto crowd seems tech-savvy and China does not always do what it says. Like, maybe everthing they do is a false flag operation....
Interesting analysis... especially the second point. And in the usual China fashion, their cryptocurrency will probably out-grow even BitCoin.
My question is; what happens to all current holdings by Chinese people? Do they just now sit there un tended or will the government give them some time to exit the markets. I guess we shall see.
No idea...
So the question is would anyone invest in a Chinese backed crypto?
Absolut.
Those who invested in Chinese companies always made their money. Filthy rich. So, why not.
Who cares about security or human right anyway. Money talks
The consequences I see, I am living them. Less pressure on the Demand of Bitcoin is causing it to fall. Then we have the Credit Card 💳 impact. Less pressure again. I am surprised how well Steem has done.
In fact, Steemit.com is the Royal 👑 Road to Bitcoin World via Crypto Exchanges
Isn't NEO Chinese?
Will they reuse it or adapt something completely new.
If they invent a new centralised crypto, I guess we will see Facebook adopt that one soon. Or vice versa.
Ripple is centralised, isn't it?
China will go crypto, there is no doubt
Thank you very much dear friend @dragosroua for sharing this information.
I think that China intends to create its own cryptocurrency and launch it to compete with the market leader.
is very proobable the big drop in the prices of all the cryptocurrency is due to this information
I wish you a wonderful week
It will not compete.
Same as Baidu doesn't compete with Google.
1bn Chinese just cannot access the later.
And that's how you corner a market :)
I'm sure that this is coming ahead of the release of a state-backed cryptocurrency in China. It also only impacts the average man, because any of the Chinese elite have accounts in Hong Kong or Singapore that they can trade from.
This should promote the rise of DEX like BarterDEX https://komodoplatform.com/en/technology/barterdex
Openledger, https://crypto-bridge.org/ and others.
As soon as I saw the news you shared I knew the price would drop, now I wonder if cryptos will recover after so much bad news, about regulations and bans, its a surprise that Steem has held out so well ❤
no, it's not :) Steemit is one of the most solid projects in the cryptoverse.
Well I am now hoping that the market will hit a nice low so I can gather some nut's :-)
you and me both.. ive already been throwing money at it like a stripper these last few days anyhow lmao, now im holding out for even bigger drops..
nice post bro about bitcoin
Wow!!😍😍😍it's a nice post about bitcoin!!
Wow! Seems like it would be very hard to completely block the cryptos.
I believe that this decision is good for china as a country, but bad for every single person in the world, walls aren't helping global economy.
Well that's one way to keep the price of btc low. I imagine this is why the markets took another dive? Or is that dive still on it's way in?
Will we see $6k btc? Ethereum was finally taken down to 800 with the latest dips. I'm surprised.
Very good decision because i bealive it
Thanks for share it
an amazing post and great informative post well keep up it and make their goal true
Thank you for sharing this information with us
-cheers-
@dragosroua
Definitely good news!
Most of chinese ICO projects are invested in by Chinese investors. This ICOs are sucking money out of BTC and Alts.. Now money will go into STEEM...
Wonderful news sir keep it up :)
@upvoted
Where can I invest into Renminbi? :)
Steem news is excellent just magnificent :) thanks for sharing us @Upvoted
this is so sad news but i hope chaina will be realise cryptocurrency ,,then chaina wii be again support crytocurrency.... that's is a brilliant idea put into reality.I also started to recover some old art skills inspired by Steemit.
That what we start to see in this new side everyone take a new step not us a group they chose the easiest way to keep the work bigger our community make us follow the system and now we waiting for the new step that everyone will get into it