China’s Ban of Crypto Sends Global Crypto Market down While Monetary Freedom Taken Away
The last crypto dip is because of China implementing a permanent ban upon the use of cryptocurrencies, including Bitcoin, in the country. The international community is blaming China for the crash as well as for various other reasons.
A move by the China’s central bank in divorcing the use of cryptocurrencies in China has impacted the global crypto market a great deal. The clampdown came one day after Twitter announced that its 330 million active users will be able to send Bitcoins to one another. This twitter announcement had then sparked a rage in the People’s Bank of China which declared all cryptocurrencies illegal in the country. For now cryptocurrency usage, as well as trading, is prohibited in China, which includes ban on Bitcoin as well.
Beijing accused cryptocurrency of disturbing the economic and financial order and endangering the peoples’ property. However, the purpose of banning Bitcoin was twofold and disruption of economic order is one out of the two reasons.
Bitcoin was introduced in the global arena way back in 2009 as a network that comprised an open source monetary system. It was developed on the basis of a ground-breaking technology called “blockchain” which came into being simultaneous with Bitcoin. China was amongst the first countries which initially foreseen the immense potential of digital currencies.
Similarly, Chinese people thought that the use of digital currencies allowed them monetary freedom, therefore, they gladly adopted Bitcoin. But in the recent past, China developed its CBDC and wanted to divert nation’s attention from cryptocurrencies towards digital Yuan. However, it was not an easy task for the Chinese Government to divert public attention towards digital Yuan immediately.
Chinese Government then came up with a plan and banned crypto usage in the country which resultantly led to a dip in the crypto prices in the world. Apparently, the monetary freedom has been taken away by Chinese Government from the Chinese people. All the achievements, which China had earned over the past 10 years, have been forgotten and put in the storage rooms.
As of now the usage of Bitcoin as well as that of any other cryptocurrency is officially banned in mainland China. This has set a bad example for other countries who could, by chance, be influenced by what has been done by China. Otherwise, crypto started to obtain recognition as a substitute to conventional paper money. However, to the majority, it was an alternate long-term-based investment vehicle. Apparently, because of the ban, many crypto exchanges of China have been shutting down their operations while most of them have been moving offshore.
Even the biggest Bitcoin miners of China are moving out of China and trying to settle in neighboring countries. They want to quickly get back on their feet by resuming their mining operations. Already, too much time has been wasted. But does it really matters for China to artificially push digital Yuan’s usage while sacrificing public opinion.